The 2025 GMC Yukon Denali has emerged as a formidable contender in the full-size luxury SUV segment, offering a compelling alternative to the Cadillac Escalade with its burly V-8 and available air suspension. This refreshed model delivers an impressive combination of power, luxury, and capability that positions it as a serious competitor in the premium SUV market.
Bold New Design Language Sets the Yukon Denali Apart
Exterior Styling Updates Create Maximum Impact
The 2025 model year brings significant aesthetic improvements to the Yukon Denali. New fascias, a reworked grille, and tweaks to the headlights and taillights keep things fresh while retaining the SUV’s presence and handsome looks. The Denali trim distinguishes itself with exclusive design elements including its trim-specific grille, 20-inch chrome wheels, and additional exterior brightwork.
The front and rear lighting elements can now play animations, adding a modern tech-forward touch to the vehicle’s commanding presence. For those seeking maximum visual impact, flashy 24-inch wheels are standard on the Denali Ultimate but optional on the regular Denali, creating an unmistakable road presence.
Interior Technology Revolution
The cabin receives the most dramatic updates for 2025, with the infotainment system adopting a vertical 16.8-inch touchscreen. This massive display serves as the command center for the vehicle’s extensive technology suite, including the 18-speaker Bose sound system, Bluetooth, navigation, wireless Apple CarPlay, Android Auto, and Google Assistant.
Powertrain Performance: V8 Excellence Meets Diesel Efficiency
6.2-Liter V8: The Heart of American Power
The Denali’s default setup is a 420-hp 6.2-liter V-8 that delivers impressive performance capabilities. The big V-8 pairs with a 10-speed automatic, a combination that yields a 5.9-second run to 60 mph. This powertrain combination provides plenty of drama when you flat-foot the right pedal, as the GMC squats on its rear end, lifts its nose skyward, and roars forward.
Diesel Option Delivers Superior Efficiency
For buyers prioritizing fuel economy and torque, the 3.0-liter Duramax turbodiesel six-cylinder is available on both Yukon Denalis, and for 2025 makes 305 hp and 495 lb-ft. This represents a significant upgrade from the previous year’s output. The last Tahoe we tested with the diesel returned an impressive 27 mpg in the same test, and the Yukon diesel should deliver similar fuel economy.
Luxury Features That Rival Premium Brands
Denali Ultimate: The Peak of GMC Luxury
The range-topping Denali Ultimate trim pushes luxury boundaries with features that directly compete with premium European offerings. The 2025 GMC Yukon Denali Ultimate comes equipped with over 15 standard safety and driver-assistance features, including automatic emergency braking, blind zone steering assist, rear cross-traffic braking, front pedestrian and bicyclist braking, reverse automatic braking, teen driver monitoring, and an advanced security system.
Advanced Safety and Driver Assistance
GM’s Super Cruise advanced hands-free driving system represents one of the most advanced driver assistance technologies available. Complimentary for three years on the Yukon Denali Ultimate, Super Cruise maintains speed and lane position with no input from the driver and will even change lanes automatically.
The available Night Vision is one of the most remarkable innovations for the 2025 model year, using infrared to show objects ahead that emit heat, like vehicles, people, and animals. This technology allows drivers to see beyond the range of their headlights, significantly enhancing safety during nighttime driving.
Interior Space and Comfort: Built for Families
Seating Configuration and Comfort
Both the Yukon and long-wheelbase Yukon XL offer seating for up to eight passengers, although ordering the popular second-row captain’s chairs lowers the total capacity to seven. The Denali Ultimate elevates comfort with premium materials throughout.
However, the second- and third-row seats fail to measure up to the Denali’s near-six-figure billing, with the flat backs and bottoms of the captain’s chairs offering limited support. The third row, while spacious enough for adults, requires passengers to position themselves strategically for optimal comfort.
Technology Integration
From the driver’s seat, you see a large gauge cluster that is colorful and easy to read, with a highly configurable driver info center that you scroll through from the steering wheel. The system can display navigation, trip information, and media controls simultaneously, while a large, colorful head-up display provides additional information without requiring the driver to look away from the road.
Capability and Performance: More Than Just Luxury
Towing and Hauling Prowess
The towing capacity reaches 8,000 pounds, making it suitable for recreational trailers, boats, and other large loads. The diesel engine option proves particularly well-suited for towing applications, with its substantial torque output providing confident pulling power.
Ride Quality and Handling
Handling is pretty good for a full-size SUV, aided by the Denali’s standard adaptive air suspension, with very little lean in corners and steering that provides good feedback. However, the ride takes a hit when the road surface gets rough, with the suspension bouncing around on backroads in a state of disrepair.
Market Position and Value Proposition
Pricing Strategy and Competition
The Denali positions itself perfectly for customers either in search of a premium-looking full-size SUV sans the baggage and opulence associated with premium brands or unable to come up with the $10,600 in scratch over the Denali to nab a $90,295 Cadillac Escalade.
Pricing starts at $77,500 for the Denali, with the AT4 Ultimate at $95,800, and the Denali Ultimate at $101,800. This positioning allows the Yukon to compete directly with luxury alternatives while maintaining the GMC brand’s reputation for capability and value.
Fuel Economy Considerations
On our 75-mph highway fuel-economy test route, our 2025 Denali test vehicle with the 6.2-liter delivered 20 mpg, which is competitive for the segment but trails more efficient competitors. The EPA estimates that the Yukon Denali 4WD model will average 16 mpg in combined city and highway driving.
Technology and Innovation Leadership
Google-Based Infotainment System
The new Yukon’s cabin is much more high tech than before, highlighted by the standard 16.8-inch vertical touchscreen display showcasing a Google-based infotainment system. The system integrates seamlessly with both Apple and Android devices, providing wireless connectivity and intuitive operation.
Advanced Safety Features
The comprehensive safety suite includes features that were previously exclusive to luxury brands. The available Night Vision uses infrared to show objects ahead that emit heat, with a yellow box highlighting pedestrians and animals in its field of view.
A Compelling Luxury Alternative
The 2025 GMC Yukon Denali successfully bridges the gap between mainstream and luxury SUVs. It’s more luxurious than the Chevrolet Tahoe but more rugged and affordable than the Cadillac Escalade with some overlap baked in for good measure. For families seeking a capable, luxurious SUV without the premium badge markup, the Yukon Denali presents a compelling proposition.
The GMC Yukon was already an impressive full-size SUV, and the updates to the 2025 model just make it better. The combination of powerful engines, advanced technology, and competitive pricing positions the Yukon Denali as a strong contender in the luxury SUV segment.