In 1906, Winchester decided to offer a lower-cost version of Model 1890. Model 1906 used same receiver, but fitted with 20" round barrel and plain gumwood straight-grip stock. When first introduced, it sold for two-thirds the price of Model 1890. For the first two years, it was chambered for .22 Short cartridge only. In 1908, it was modified to shoot .22 Short, Long and LR cartridges interchangeably. This modification ensured Model 1906's success. Between 1906 and 1932, about 800,000 were sold. All Model 1906s were take-down variety.

Model 1906 available in three important variations:
1. .22 Short Only: 20" round barrel; straight-grip gumwood stock; smooth slide handle. These were built from serial number 1 to around 113000.
2. Standard Model 1906: 20" round barrel; straight-grip gum­wood stock; 12 groove slide handle. Serial numbered from 113000 to 852000.
3. Model 1906 Expert: 20" round barrel; pistol-grip gumwood stock; fluted smooth slide handle. Expert was available from 1918 to 1924. Offered in three different finishes: regular blued; half nickel (receiver, guard and bolt); full nickel (receiver, guard, bolt and barrel).