The Hägglunds BV206 has been fitted with a variety of engines over its long service life, reflecting both its evolution from early petrol‑powered vehicles to more modern diesel installations and the aftermarket interest in remotorising older units.

Originally, many BV206s came with a petrol/Gasoline V6 engine sourced from Ford. This is an industrial V6 unit similar to those used in older Ford vehicles producing around 125–136 hp with good low‑end torque. Its simple carburettor‑based design makes it easy to maintain and find spare parts for, which has kept petrol BV206s appealing to some civilian users even though diesel engines are generally preferred today.

On the diesel side, early and military‑standard BV206s were fitted with Mercedes‑Benz diesel engines. These came in both 5‑cylinder and 6‑cylinder turbocharged configurations, with outputs roughly in the 125‑136 hp range. The 6‑cylinder variant, often the standard for later military deliveries, provided reliable torque and durability across demanding terrain and climates.