The full M version of the G20 3 Series is powered by the BMW S58 turbocharged straight-six engine that debuted in the G01 X3 M. The more notable changes for the G80 M3 are a power output of 473 hp, which is a 35 kW (47 hp; 47 hp) increase over the previous F80 M3, and the adoption of the twin-kidney grille from the 4 Series, which was notably controversial among critics. All-wheel drive (xDrive) is optional on the new M3, the first time that an M3 has used a drivetrain layout other than rear-wheel drive. A manual gearbox is available only with rear wheel drive, and is the only transmission available on the standard M3 model.

It is available as a Touring (estate) model, marking the first time BMW has offered an M3 Touring. The G80 M3 went on sale as a 2021 model, with the initial prototypes tested at the Nürburgring alongside the BMW M4 G82. It was officially unveiled on 23 September 2020 alongside the new M4.