The Lionel Adriatic Type 2-6-4-Locomotive No. 2037 would replace the No. 2026 and No. 2036 in 1953 and would continue in production for another two years. It would be released again from 1957 until 1963. Except for the number, this locomotive is identical to the No. 637.

This locomotive was equipped with Magnetraction, a smoke unit, and a three position directional unit whose control lever protrudes from the top of the boiler right in front of the cab. It did not have the side connecting valve rods, and the number "2037" is usually heat-stamped on the cab. There are five variations that usually have to do with the type of tender that accompanied this locomotive:

Variation A: Rubber-stamped number on cab and came with a No. 6026T tender. (1953) Variation B: Heat-stamped number on cab and came with a No. 6026T tender. (1954-55) Variation C: Same as Variation B, except came with a No. 1130T tender with bar-end trucks. (1957) Variation D: Identical to Variation B, except came with a No. 6026W tender that has bar-end trucks that most of the time has a tabbed coupler. (1957-60)

Variation E: Similar to Variation D, but with either a No. 233W or No. 234W tender with early AAR trucks and one disc coupler. (1961-63)

Note: the above picture shows a Scout No. 6066T Early Coal Tender (note the large "LIONEL LINES" lettering). This tender was included with this locomotive in at least some of the No. 1511S sets issued in 1953.