The 1994 Toyota received a few safety improvements, bringing it into the modern age. For the first time, passenger-side airbags were standard across the board. Also, the passenger and rear seats got retractable locking seatbelts.

The 1994 Toyota Corolla was available as a wagon and a sedan. The wagon came in the DX trim level, and the sedan came as a standard, DX, or LE. The base engine was a four-cylinder, 1.6-liter, 102-horsepower engine, and the DX and LE sedans could be upgraded to a 1.8-liter, 115-horsepower engine. Fuel economy, depending on the engine and transmission, was about 26-34 mpg.

Owners of the 1994 Toyota Corolla like it for its good fuel economy and reliability and say that with regular maintenance, it will last for hundreds of thousands of miles. Complaints include lack of interior space and amenities, and slow acceleration.