The Scion xD is the brand's "urban subcompact", designed to balance fuel efficiency and value with style and comfort. It is packaged as a versatile five-door hatchback, with a top-hinged liftgate that provides easy access to the rear cargo area.

The xD is powered by a 128-hp 1.8-liter four-cylinder engine, paired with either a standard five-speed manual or an available four-speed automatic transmission. Every xD is equipped with 16-inch wheels, air conditioning and cruise control, as well as power windows, exterior mirrors and door locks with remote keyless entry; a satellite-compatible 160-watt Pioneer audio system features MP3 capability, USB connectivity and an auxiliary audio input jack for portable music devices. The rear seats are split 60/40, and can be folded down flat for increased cargo carrying capacity; they can also be reclined up to ten degrees, as well as moved fore or aft up to six inches for increased leg room. Safety features include a vehicle stability control system with integrated traction control, anti-lock brakes with brake assist, a tire pressure monitor, and dual front, front side-impact and overhead curtain airbags.

The Scion xD carries over with minimal changes for 2010. A vehicle stability control system with traction control, previously optional, is now standard equipment. Additionally, the new standard audio head unit features USB connectivity (including iPod and iPhone) and a subwoofer RCA output.