The Merkava Mk.4 LIC (Low Intensity Conflict) is a modification of the Merkava Mk.4B developed in the mid-2000s, designed for combat in densely built-up urban areas. To prevent explosive charges from being installed in vulnerable parts of the tank, the optics, exhaust ports, and ventilators are all covered by a newly designed high-strength metal mesh. The vehicle's mine protection was improved, and to assist with navigation and manoeuvrability in an urban context, rubber whip pole markers with LED tips and a rear-facing camera were also installed.

Introduced in Update "Sky Guardians", the Merkava Mk.4 LIC is practically identical to the Merkava Mk.4B, except for the addition of mine protection, which increases the hull's protection against HEAT rounds but also increases its weight by three tons. In real life, the Merkava Mk.4 LIC is mostly used as a supplement to the Merkava Mk.4M for hunting down insurgents on low-intensity urban battlefields, and it can take a similar role in-game, supporting frontline fighters with its powerful cannon and strong hull-down capabilities.