After the BMD-4 received a lukewarm reception in the Russian Airborne Forces due to the platform’s limited reliability, Kurganmashzavod presented a modernised version on 21 March 2008 — the BMD-4M. This variant featured extensive chassis unification with the BMP-3, sharing many components and systems, a new engine, and a thermal imaging sight, while retaining the turret from the original BMD-4. The vehicle successfully passed trials, and serial production was initially planned for the following year. However, the military decided to suspend its adoption. Compared to the BMP-3, the BMD-4M was significantly more expensive and offered less protection. By 2012, the army had decided to abandon the project entirely.

The situation changed after eight prototypes, prepared by Kurganmashzavod in 2014, underwent further testing. These trials left a favourable impression, and in April 2016 the BMD-4M was officially accepted into service. By 2022, the Russian Armed Forces operated around 350 BMD-4s of all variants, with deliveries continuing.

The BMD-4M was introduced in Update 2.43 “Storm Warning”. In many respects, it represents an improved BMD-4: while it loses the reverse gearbox, it gains a more powerful engine, retains its original armament, and receives improved armour protection. Its compact dimensions and thermal sight make it effective for reconnaissance and rapid deployment. On the other hand, its gun sometimes lacks sufficient penetration, and the vehicle’s light armour offers little protection against tank-calibre shells.