The BMD-4 is the last in the line of the BMD series of airborne combat vehicles. It retains the chassis of its predecessor, the BMD-3, but features a 100-mm 2A42 smoothbore gun, bringing its firepower in line with that of its larger non-airborne counterpart, the BMP-3 which it visually resembles. The addition of an AT-5 launcher on the turret roof further contributes to it being the most heavily armed vehicle of its type. The BMP-3 retains amphibious capability provided by a pair of waterjets in the rear hull, it is also able to be airdropped with its crew (along with five equipped troops) inside, avoid the need for assembly after landing. The BMD-4 is in use exclusively with the Russian Army which in late 2012 decided to adopt a modernized version for initial production. Additionally, various existing BMP-3's have been upgraded to BMP-4 standard and are in service.

The BMD-4 (Object 960) was developed from the BMD-3 with the new turret carrying the 2A42 gun. An upgraded variant is known as the BMD-4M, with a new chassis and the same 500-hp engine used in the BMP-3. It is scheduled to be built by Kurganmashzavod, the first in the BMD series not to be built in Volgograd. Non-IFV variants include the BTR-MD Rakushka multi-role transport with a larger hull and the turret removed. It can also be used as a mortar platform, a command post vehicle and a recovery vehicle. An upgraded version that incorporates the improvements of the BMD-4M is known as the BTR-MDM. Other variants include the BMM-D armored ambulance and the and RKhM-5 chemical reconnaissance vehicle.