Potential starter retro on C&C

On 15 August 1992, the Proton Saga Iswara (also known as the Proton Mpi or Proton Iswara in the United Kingdom) was launched.[7] It was named after the great Helen butterfly (Papilio iswara) of Sarawak. It shared the platform found in the previous iteration, but received major exterior and interior changes. The Saga Iswara was available in 4-door saloon and 5-door hatchback guises and was equipped with the same Mitsubishi Orion 1.3L and 1.5L engines. The saloon version of the Saga Iswara became Malaysia's preferred choice of taxi.

It continued to be exported to Europe until 1996, having been sold alongside the Persona (Wira) there since 1993.

In 2001, Proton introduced the Iswara Aeroback Special Edition. It was based on the Saga Iswara hatchback but included large exterior cosmetic changes and minor interior alterations. It was only available in silver, with manual transmission and the 1.3 litre 4G13 engine.