The second generation Proton Saga is a four-door subcompact saloon produced by Malaysian car manufacturer Proton which launched on 18 January 2008. It succeeds the first generation Proton Saga as the company's mainstay. The second generation Proton Saga is based on a stretched Proton Savvy platform and was developed in-house by Proton with technical support from Lotus Cars and LG CNS.

Proton launched a mid-life facelift model called the Proton Saga FL on 30 November 2010. A further improved model called the Proton Saga FLX was launched eight months later.

The second-generation Saga was succeeded by the third-generation Saga in September 2016. Over 500,000 units of the second generation Saga were produced.

The second generation Proton Saga, also called the Saga BLM (Base Line Model) launched on 18 January 2008. Previously, the first generation Saga was Proton's most successful model, having a 23-year-long lifespan, the longest of all Proton models to date. The second generation Saga was indigenously designed and became the first model to wear Proton's new corporate logo. It launched with 3 variants, the N-Line, B-Line and M-Line which were priced between RM31,498 and RM39,998 respectively. All variants were powered by Proton's 1.3 litre CamPro IAFM engine. Also showcased during the launch ceremony was a concept model called the Proton Saga RED. The new Saga was a great sales success for Proton, having received over 23,000 bookings in less than two weeks since launch. Furthermore, it replaced the older Saga Iswara as Malaysia's taxi of choice from 2008 to 2010. These taxi variants were equipped with more powerful 1.6 litre 110 bhp CamPro engines and were later converted to NGVs.

In June 2009, the Proton Saga 1.6 B-Line was launched. It shared the engine found in the Saga taxi variant, but lacked many features, including a driver's airbag. One month later, the Proton Saga SE was unveiled. Priced between RM43,000 and RM45,500, it was sold as a premium variant with just 2 colour options and a unique body kit, mated to the CamPro 1.3 engine found in the other models. On 16 July 2009, Proton unveiled the electric vehicle conversion version called the Saga EV Concept in Universiti Putra Malaysia, Serdang. It is powered by a 125 kW (168 hp) DC motor only mated to a 5 speed manual transmission, it had a maximum range of 109 kilometres (68 miles) and could be charged over a standard household outlet.

On the Christmas eve of 2009, Proton launched the S16 in the Australian market. There was no official reason why Proton chose to rename the Saga as the S16 in Australia. Nonetheless, the S16 is identical to its Malaysian counterpart, but featured the newer 110 bhp CamPro 1.6 engine instead. At the time, it retailed for AUD$11,990, making it the cheapest new car in the Australian market. That title has since been passed on to China's Chery J1. The launch of the S16 was endorsed by Miss Universe Australia beauty pageant Rachael Finch, Proton's official Australian ambassador for 2009.

In July 2010, a limited edition model called the Proton Saga 25th Anniversary Edition was unveiled. Priced at RM54,500, it offered leather upholstery, dual airbags and quad power windows along with a custom set of alloy rims and paint job. Only 25 examples were made, in-line with Proton's 25 years of automotive history.

In Indonesia, only the M-Line variant is available, with either the manual or the automatic transmission, with a choice of seven colors: Solid White, Tranquility Black, Chili Red, Granite Grey, Genetic Silver, Mountain Blue, and Zircon Green. It comes with a 3-year or 100,000 km warranty.