The second generation Toyota Camry Solara (E120 series) was introduced in mid-2003 as a 2004 model. Constructed on the foundation of the Camry XV30 sedan, the Solara wore a distinct body design characterized by sweeping teardrop lighting clusters and flowing aerodynamic profile contours, achieving a drag coefficient of 0.29. The lineup again offered both a two-door hardtop coupe and a two-door convertible featuring a motorized electro-hydraulic soft top. Interior styling integrated Optitron gauge cluster illumination, metallic or simulated wood trim accents, and automatic climate controls.

The base powertrain was a 2.4-liter 2AZ-FE four-cylinder engine generating 157 horsepower, while upper trims received a 3.3-liter 3MZ-FE V6 engine delivering 225 horsepower paired with a new five-speed automatic transmission. Four-cylinder variants were offered with a five-speed manual or four-speed automatic transmission. A 2006 facelift updated the front fascia with LED taillamps, revised alloy wheel options, MP3 compatibility, and Bluetooth wireless connectivity. Production of the Solara concluded in 2008.