The fourth-generation Vista was remodeled along with its sister car Camry, and was released in July 1994. In contrast to the previous model that came out amid the economic boom and boasted a luxurious image, the fourth-generation model was simple and subdued yet of high quality. As before, the body variations consisted of a 4-door sedan and a 4-door hardtop, although for the first time the wheelbase was extended by 50 mm to reach 2,650 mm, making the Vista's cabin one of the most spacious in its class.

The choice of engines included 1.8- and 2-liter "high-mecha" twin-cam units and a 2.2-liter turbo diesel unit (3C-T). The drivetrain configuration was either front-engine, front-wheel-drive or full-time 4-wheel-drive (4WD) (available only with 2-liter gasoline engine models). The transmission was either a 5-speed manual or a 4-speed automatic. A full-time 4WD version was added to the diesel model in January 1995.