This is my favorite engine swap for the AW11. The 2ZR is a 1.8L with the same architecture as the 2GR. It came installed in millions of Toyotas since 2007, with some even still in production. The 2ZR is also used in the S3 Lotus Elise overseas, NA and supercharged. It offers a respectable power bump in the AW11, with a very similar power delivery to stock.
Below is a comparison to the 4AGE. This is a basic 2ZR swap, with an ACIS intake manifold and stock AW11 muffler. Below that, with my 2ZRFAE track car and a turbo 2ZRFE added. There's certainly potential for power with this platform.
4AGEs have been dying for decades, and have become very difficult and expensive to rebuild properly. We do this swap, turn key, for the same price or less than we could do a rebuilt 4AGE for. This a much more budget and DIY friendly option than the 2AR and 2GR. I recommend avoiding 2ZZ swaps, the motors are plagued with reliability issues and have now been out of production for 20 years.
So far I have experienced no oil starvation issues, logging oil pressure on my track car, up to 1.4G sustained, and have found no discussions from S3 Elise owners regarding oil starvation issues with the 2ZR. The oil pump is chain driven, so this motor is good for lots of RPM with the stock oiling system. The stock bottom end has been proven at 8300rpm and 220ftlbs.
Swap Parts List
I have made a very comprehensive list of swap parts. A lot of expense can be saved by DIYing fab work, and sourcing used parts.
Mounting
The 3 stock transmission mounts, as well as all of the shifter linkage from the AW11 are retained. The shift cable bracket must be modified. This is included in our swap kit. The rear mount must be slotted to move it 1/2" left, and the front mount must be slotted to move it 1/2" forward.
I worked with Hux Racing to bring a passenger side motor mount to market. I highly recommend getting the rubber bushing. You'll also need a clutch hose from Hux to work with the new slave cylinder.
Electronics
I use a Scion xD ECU for this swap. You can use an 08-09 xD ECU untuned, because they have no immobilizer. The MAF calibration will be off with this, and they have a 6600 RPM rev limit, so I highly recommend getting a tuned ECU from us. However, I made it work for a while before I cracked the ECU tuning. 2AR green injectors just about cancel out the MAF miscalibration with a 2.5" MAF pipe.
The easiest harness option is to reach out to Wiregap and have him make you a harness from scratch. However, you can start with a used harness to save some money, whether you send it to Wiregap or do it yourself.
For 85-86 cars, the best core to start with is any Scion xD. The ECU plug will reach through the passenger side harness hole. Mk1a wiring documented here.
For 87-89 cars, the best core to start with is a 09-10 Corolla harness. The ECU plug will go through the driver side harness hole. The later Corolla had a different ECU pinout, so make sure you get the 09-10 version. Mk1b wiring documented here.
Engine Choice
2ZRFE
Simplest choice. Makes about 135whp. The early 2ZRs from the Scion xD and 09-13 Corolla have reliability issues with cam gears and head gaskets. This also makes them more expensive. I always buy for a 2015 Corolla, as it has the updated parts and is generally the cheapest option.
2ZRFAE
Big cams for more power. This engine has  Valvematic, which is variable intake cam lift. I suppose Toyota decided that if they were going to do variable lift, they'd put the biggest cams possible in it, and just reduce lift. They're huge. The actuator for this system is bulky and doesn't work with the tunable Denso ECU available in the US. There was a Denso ECU available overseas, and I have provided a tuned version of this ECU for a couple of swaps. My preferred method of using the 2ZRFAE is to delete the Valvematic, setting a fixed cam lift, and running FE electronics. This has limitations. The stock ECU does not approve of too much lift and throws misfire codes, enabling limp mode. There's no way around this, but to run less lift, or a standalone ECU. The point at which this occurs is still equal to or higher than the 2ZRFE's power output. Our Valvematic delete kit comes with a spacer to set cam lift appropriately. I've been installing 2ZRFAE engines to future proof. Every 2ZRFAE has the updated cam gears and head gasket, as well as beehive valve springs good for 8000rpm.
2ZRFXE
Single VVT Atkinson cycle version used in hybrids. You can pick these up cheap with blown head gaskets. Has 13.0:1 compression pistons that work in an FE and give a good bump in power, but the engine is pretty useless otherwise. They have an electric water pump that makes using one in a swap unrealistic. The cams have more duration than the FE, but significantly less lift, so not a likely performance upgrade.
3ZRFE & 3ZRFAE
2.0L version, but every version I've found available has a different bellhousing. The crankshaft does fit the 2ZR block and flywheel, but the connecting rods hit the side oil pan and block walls from the extra stroke. The rod journals are larger than the 2ZR, so an offset grind could be made to work. Could be helpful for a high effort engine build, but not a viable swap option.
Transmission Choice
The only engine the 2ZR shares a bellhousing pattern with is the 1NZ. Therefore your existing transmission will not bolt up, but there are several C series transmissions that use the stock mounts and shift mechanisms.
09-13 Corolla C59 is the easiest option. The shift shaft just needs to be removed and flipped. Then MR2 shifter parts can be moved over. SW20 NA axles work. It has a tall 5th gear which is nice for the highway, but it also has a tall 4th gear which can be a bit painful if you shift too early out of 3rd.
There is a JDM 6 speed C60/C65 available frequently on eBay. Make sure it's the C series, not the EC series. This transmission is fairly easy to make work, however it does not have a detent between first and reverse. The car it came in must have a lever on the shifter. Celica GTS parts can be installed to fix this. The 6 speed is fun, but the 2ZR has such a broad torque curve that it doesn't make the car any faster. C60 6th gear is the same ratio as C59 5th gear, so cruising RPM isn't improved either.
04-06 Scion xA/xB C50. These cars have been cheap for a long time, so these are normally very questionable condition. They also do not have the shifter coming out of the front of the case. It is possible to drill the case to install an MR2 shift shaft, however I tend to just use these transmissions as a bellhousing donor.
My favorite transmission choice is a MR2 Spyder C56 with helical LSD, a C59 5th gear, the case drilled for an AW11 shift shaft, and a Scion xB bellhousing. The C56 has just perfect gear ratios, especially with the C59 5th installed.
The Toyota Echo C150 works as a bellhousing donor, but does not have the top mounting points on the center case to work in an engine swap.
The Toyota Yaris and Scion xD have mounts that do not work with the MR2. These are neither viable transmissions nor useful bellhousings.
Adding More Power
ACIS Intake Manifold
There is an intake manifold available with switching intake runner lengths. Long runner for bottom end, short runner for top end. With no extra vacuum lines or electronics, this gives a nice boost in top end power. You can also add a check valve, VSV, and RPM switch for gains in both the bottom and top end. The shift cables do get tight with this manifold, I pull the tight one into the cabin further and they work fine without binding. Below is a graph from a simple 2ZRFE swap. Red is stock FE manifold. Blue is ACIS manifold short runner mode, open port. Green is long runner mode, vacuum applied to actuator.
This was not installed on vehicles in the US. It is available for purchase from Toyota, 17120-37070. You can also find them on eBay for cheap. Search "Toyota ZR manifold," sort by price, then in filters select item location worldwide and condition used. You're looking for one that says 1ZR, 2ZR, or 3ZR, with the round ACIS actuator by the throttle body.
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Header
The 98-02 Corolla exhaust manifold is great for basic swaps. It fits super easily, sounds good, and is cheap. It's not exactly a racing header. I've seen great results from better headers, but they have to be custom.
This was a 1ZZ MWR header I believe, that I cut the flange off of, cut some out of the runners, changed the angle, and rewelded. The tubes aren't huge, but the power gains were there. Graph shown is 2ZRFE with ACIS, FXE pistons, MWR stage 3 cams, and tuned stock ECU. I don't recommend the cams, they were not worth the trouble.
For my 2ZRFAE racecar, I made a header from scratch, with 1.75" runners. This had huge gains at full lift. Graph shown is just a stock 2ZRFAE with Valvematic locked at full lift, ACIS manifold locked in short runner mode, and an EMU Black.
2ZRFAE Valve Lift
The FAE has a massive intake cam. Duration increases as you increase lift, so best case scenario is full lift. However, Toyota also decided to put a 60 degree intake phaser on the intake cam, only for the FAE and 2015+ FXE. As intake cam advance is increased, the pistons get closer to hitting the open intake valves. I stupidly assumed the phasers were the same as the FE, and I killed a motor in spectacular fashion by only testing piston to valve clearance at the ~40 degrees allowed by FE phasers. The pistons do in fact hit the valves on the FAE at 60 degrees and full lift. The Valvematic actuator coincidentally (not) does not go to full lift. The good news is, you can still run the motor at full lift and duration. You can knock the intake cam back a tooth, this will actually improve idle as well, but will not work with the stock ECU. The other option is to swap to an FE intake cam phaser. You'll want to find one for a 2014+, and careful buying new OEM, as they are often fake. I actually prefer to buy used for this reason.
Intake phasers for 2ZR - VVT angles are discussed in crank degrees which are double of cam degrees. 2ZRFE is 42 degrees. 2ZRFXE pre-2015 is 53 degrees. 2ZRFXE 2015+ and 2ZRFAE is 60 degrees. The 2ZRFAE engine will actually allow 50 degrees without crashing valves, but I have seen no improvement in mid range above 40 degrees.
The stock ECU does not approve of full lift, it will throw misfire codes and go into limp mode. My ECU of choice is an EMU Black, If you purchase an EMU from us, I will be happy to provide a base map for the 2ZR.
Turbo!
The 2ZR with a turbo is an absolute blast to drive. It's a perfect amount of power, and makes all the right noises. I have only done one of these to date, but it's been put through hell and is still running strong. It was done with a $140 Chinese journal bearing cast GT2860 replica on a stock 2ZRFE. The turbo is at its absolute limit at 285whp. I'm currently working on another with a 2ZRFAE and Comp oilless 4850. This will have more head room and doesn't require welding an oil drain to the oil pan. I'm optimistic for 320whp from a stock 2ZRFAE.