The fourth-generation Corolla sedan released in March 1979 extended the wheelbase by 30 mm, and the front and rear treads by 25 mm and 50 mm, respectively. The vans were renovated five months later in August, bringing the number of Corolla's body variations to seven, including 2- and 4-door sedans, a hardtop, a coupé, a liftback, and 2- and 4-door vans. The new body design featured more linear contours.

The sedan and van models adopted four round headlamps that were prevalent among high-grade cars, while the coupé used two rectangular ones. The GT and Levin models adopted large shock-absorbing polyurethane bumpers. The front seats were no longer integrated with headrests, except for a few models. The choice of engines included 1,300 cc (4K-U), 1,500 cc (3A-U) and 1,600 cc (2T-GEU) units, and a DOHC option (2T-GEU) was also offered to the sedan and hardtop models. The 4-door sedan offered additional options, including a 1,800 cc engine (13T-U) in August 1979 and a 1,800 cc diesel (1C) in February 1982.

Regarding the mechanism, a major change was made in the rear suspension, replacing a semi-oval leaf spring system with a 4-link coil spring system and a lateral rod to improve ride comfort and stability. Servo-assisted front disc brakes were standard-equipped on all models, and the 1,300 cc model adopted the rack-and-pinion steering mechanism. The headlamps were switched to non-standard rectangular ones in a minor model change in August 1981 (except for vans).

The fourth-generation Corolla had the largest number of body variations in the brand's history. Cumulative production of the Corolla reached a record 10 million units in March 1983.