The basic concept for the Nismo R34 GTR Z-tune was finalized in 2000, and the vehicle made a debut at the Nismo Festival. At that time, the vehicle was entered into Tuners Battle. In 2001 the engine was changed through development from the Z1 to Z2 model. In 2003, it was finally taken to the Nürburgring. The engine was used in the Nürburgring 24-Hour Endurance Race, where it proved itself, and in the 2004 race it won in its class and the overall 5th position. 2005 and Nismo celebrates its 20th anniversary, they announce that the car will be made available to just 20 customers.

Engine body parts
	Camshaft The camshaft were chosen to balance engine performance and legal emissions.
	GT engine block Since 2001, the 2.8L engine has been used for GT500 competition. It has the block rigidity required of an N1 specification engine.
	GT crankshaft In addition to the GT engine block, a long-stroke crankshaft, which has proven its performance and durability in the GT500 engine and in races of various categories, such as Nürburgring 24-Hour Endurance Race, was used. In addition to achieving a standard ratio 4 mm up long stroke (77.7 mm),
	Pistons To achieve excellent engine performance and response of over 500bhp special lightweight, highly rigid forged pistons with cooling channels were developed.
	GT connecting rod As with the GT crankshaft, the 121.5 mm dimension connecting rod has actually been used in the GT500 as well as in vehicles with specifications for the Nürburgring 24-Hour Endurance Race.
	Intake Plenum The intake pipe length and diameter as well as the collector tank were changed to improve the airflow to all cylinders.
	Turbocharger The turbo`s are made by IHI. As they had already proven themselves in both the GT500 since 2001 and in the 2004 Nürburgring 24-Hour Endurance Race. Maximum boost is set at 1.5 bar.
	Exhaust The catalytic converter`s were improved and the pipe shape changed to allow the car to pass modern day emission requirements. The pipe is made of titanium (the front tube is made of stainless steel) to significantly reduce the weight.
	Engine machining Cylinder head - Combustion chamber shape changed and volume adjusted - Camshaft recess machining - IN &EHX port corrected Engine block - Boring and honing - Oil gallery plug added Piston & connecting rod  - Weight matching (within 1 g) Crankshaft - Dynamic balance Intake collector - Uneven surface correction grinding Exhaust manifold - Uneven surface correction grinding & stiffener processing
	Cooling parts
	Intercooler The core capacity was increased, the fin pitch and shape were changed, pressure loss was reduced, and cooling performance was improved.
	Radiator The core capacity was increased, the fin pitch and shape were changed, pressure loss was reduced, and cooling performance was improved. In addition, aluminum was used to focus on cooling performance during high-speed driving and high engine speeds in particular.
	Oil cooler Twin air-cooled oil coolers were installed on the front side to achieve a stable oil temperature during high-speed driving.

The body shell had to be light weight and rigid so spot welds were added to the door frames and carbon fibre to the front strut area, Bonnet reinforcement area and Center tunnel area. SACHS suspension sytem was used as it had already been proven in the 500 Series.

This brake system was developed for a target performance of 1.6 G when mounted with S tyres, and was developed by Brembo. 6 pot calipers for the front, 4 pot for he rears. The ATTESA ET-S and active L.S.D were also inproved in order to make the torque distribution to the front more suitable and to improve the rear differential effectiveness.

Nismo used the black LM GT4 "GT500 Model" which is a lightweight forged aluminum wheel which was developed with RAYS. 18 x 9.5

The car is also fitted with a Nismo Super Coppermix Twin plate clutch and Nismo carbon fibre prop shaft weighing just 5.26kg. Oilcoolers were fitted underneath the rear of the car to cool the differential and gearbox.

Exterior body parts were changed mainly to be more aerodynamic, such as the front bumper, front blister fender, and bonnet, which are all made of carbon fibre. The front bumper effectively guides air to the engine and brakes, and the front blister fenders were widened by 15 mm on one side to accommodate the wider wheels. The bonnet has air ducts. A special front under-spoiler was created to aid lowering force on the front of the vehicle. In this way, all of the aerodynamic parts used on the vehicle were designed with the airflow in mind.

The Nismo R34GT-R Z-tune expresses the Nismo corporate colors of black, red, and silver over the entire vehicle. Special silver (KYO) is used for the body color and a combination of black and red is used for the interior.