The 1989 Toyota Celica was virtually identical to the 1988 model, when the all-wheel drive model was introduced to the lineup.

The 1989 Celica offered a few different engine choices, depending on the trim levels. ST and GT coupe, the GT hatchback, and the GT convertible got a 116-horsepower, 2.0-liter four-cylinder. The GT-S coupe and hatchback had a 135 horsepower engine with 2.0 liters. The turbo-charged All-Trac got a 190 horsepower engine, which was the most powerful four-cylinder engine in the US at that time. Fuel economy was about 25 to 32 mpg, depending on the engine and transmission.

The 1989 Celica has many loyal fans, some who say it is the best car ever produced. Drivers of the 1989 Celica love its Toyota reliability combined with its sporty look and, particularly in the All-Trac, its power and performance. The car runs very smoothly at freeway speeds, and is popular for racing due to its excellent handling. Rust is a common problem among Celicas of this era, and many owners complain that the back seat is practically useless.