"I am absolutely thrilled to sign a new contract and continue my time at Aston Villa," the 24-year-old Dutchman told the club website.
"I love it here and am really excited about my future in claret and blue under the manager.
"I feel I can really develop here and show my worth to the team and I think there are bright times ahead for us all."
Bacuna, who played for the under-21 Netherlands team, has scored five goals in 56 Premier League appearances for Villa.
(Reporting by Shravanth Vijayakumar in Bengaluru; editing by Sudipto Ganguly)
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