The Toyota Celica was completely redesigned for 1986. The biggest change was that the Celica was now a front-wheel drive, much to the chagrin of drivers who loved how the rear-wheel drove. The body was also restyled as sleeker and rounder. The front-wheel drive did create more interior space, but the back seats were still cramped.

The 1986 Celica's engine was actually demoted to a 2.0-liter, but with 116 horses it was noticeably more powerful. The coupe and the hatchback were all available as the ST, GT, or GT-S models. The convertible came as a GT. The GT-S engine got an upgrade to 135-horsepower.

Although some found the new front-wheel-drive Celica not as much fun to operate, it was still a very popular car. Because of its quality Toyota engine, many are still driving theirs to this day. The 1986 Toyota Celica has excellent cornering ability, accelerates quickly off the line, and handles well even at high speeds, making it very popular for racing.