This generation was only a five-seat SUV.

The introduction of the Lincoln Navigator in the 1998 model year necessitated that General Motors be able to compete in the burgeoning American market for full-size luxury-type trucks. The right-hand-drive Escalade and Escalade ESV are available through the third-party conversion specialists without official agreement with Cadillac in Australian, Oceanic, and Japanese markets. The Escalade ESV (Escalade Stretch Vehicle) is sold in North America, Russia, and Middle East but is available by special order only in some international markets. The Escalade is currently sold in North America and select international markets (Europe and Asia) where Cadillac has official sales channels. More generally, it is a French word which is the noun-equivalent form of the French verb escalader, which means 'to climb or scale'.

The word ' escalade' refers to a siege warfare tactic of scaling defensive walls or ramparts with the aid of ladders or siege towers. The Escalade is built in Arlington, Texas. The Escalade project went into production only ten months after it was approved. The Escalade was introduced for the 1999 model year in response to competition from the Mercedes-Benz G-Class, Range Rover and Lexus LX as well as Ford's 1998 release of the Lincoln Navigator. It was Cadillac's first major entry into the SUV market. The Cadillac Escalade is a full-size luxury SUV engineered and manufactured by General Motors.

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