The show, that will go on air in November on music channel MTV India, will present live gigs without any cuts or retakes.
"MTV Unplugged is a property that both artists and music lovers look forward to. Across three seasons, we have featured legends across every genre and their unplugged compositions have become instant hits," Aditya Swamy, executive vice-president and business head, MTV India, said in a statement.
"This year we have integrated real music fans into the show and this energy will really lift the experience for viewers and performers. Brand new versions of your favorite hits are coming at you," he added.
The show will also have a collaboration with selected colleges that will give fans a chance to hop the 'MTV Unplugged 3' bus and watch the shows from the front seat. The fans will be chosen via online contests.