The Ibiza Mk4 (Typ 6J) was previewed at the 2008 Geneva Motor Show in the form of the Bocanegra concept car. It was styled by the Belgian car designer Luc Donckerwolke with a distinctive "arrow design", dispensing with the basic Ibiza design language that had been in place since the 1984 original. It was the first among other Volkswagen Group models (Volkswagen Polo Mk5 and Audi A1) to use the latest Volkswagen Group PQ25 platform in the segment of supermini cars

The model range featured a 5-door hatchback, a 3-door version, and a 5-door estate; the latter was added in Q4 2010.

The new model first went on sale in the summer of 2008, in the 5-door format, followed by a 3-door variant, marketed as the Ibiza SportCoupé or Ibiza SC. An Ibiza Ecomotive model, powered by an 80 PS (59 kW; 79 bhp), 1.4-litre diesel engine emitting 98 g/km of CO2, was launched late in 2008.

High-performance Ibiza FR, Cupra, and Bocanegra models were launched in June 2009.The Ibiza FR was powered by a 150 PS (110 kW; 148 bhp) 1.4-litre TSI twincharger (turbo and supercharger) engine with a seven-speed Direct-Shift Gearbox (DSG), while the Ibiza Cupra and Bocanegra have the same powertrain tuned to 180 PS (132 kW; 178 bhp).

In January 2010, SEAT introduced, for the first time in the Volkswagen Group on the Ibiza's specific platform, the 2.0-litre TDI Diesel engine in both a SportCoupe and a five-door Ibiza FR specification. The 2.0 TDI boasts 143 PS (105 kW; 141 bhp) and an average consumption of 4.6 L/100 km (61 mpg‑imp; 51 mpg‑US).

In September 2010, the Ibiza's SportCoupe and 5-door variants were extended with the addition of the new 1.2-litre TSI 105 PS (77 kW; 104 bhp) engine.

A special version of the Ibiza Mk4, called "25th anniversary", was presented at the Barcelona Motor Show in 2009, to celebrate the 25th anniversary of the Ibiza.[39]

There were many different trim levels for the Ibiza Mk4.] From 2009 onwards, the SEAT Ibiza was used exclusively by the UK-based Young Driver Scheme. The Young Driver Scheme uses a mixture of the SportsCoupe and 5-door variants, powered by the 1.2-litre engine.

In July 2010, a revised Ibiza Ecomotive was announced, powered by a 75 PS (55 kW; 74 bhp) 1.2-litre TDI common rail diesel engine with CO2 emissions of 89 g/km