Direct proof of use
The BTR-4 appeared in the Iraq campaign against the Islamic State in both Iraqi government service and Islamic State captured-equipment records. Oryx's November 2014 visual inventory of Islamic State equipment inside Iraq listed two BTR-4 armored personnel carriers under captured armored personnel carriers, with the article stating that its count included only equipment backed by photo or video evidence.
Iraqi government-side use is separately documented in combat reporting. A War Is Boring/Medium account of the October 2014 Jurf al-Sakhar battle says Iraqi Army mechanized columns used Ukrainian-made BTR-4 armored fighting vehicles and that the vehicles were important in defeating at least two ambushes during the advance. Defence Blog later published a May 2016 Fallujah operation item with the caption identifying a BTR-4 of the Iraqi Army and reporting Iraqi soldiers and allied volunteer fighters advancing toward the ISIS-held city.
Sources: Oryx ISIS Iraq Equipment 2014, War Is Boring Jurf al-Sakhar, Defence Blog Fallujah BTR-4
Timeline
On October 24, 2014, Iraqi Army forces and allied militias began the Jurf al-Sakhar assault after preparatory fires, and BTR-4 vehicles were reported with the mechanized advance. Oryx's November 22, 2014 Iraq list then documented Islamic State possession of two captured BTR-4s, establishing that the vehicle also appeared on the Islamic State side as captured armored materiel.
During the 2016 Fallujah offensive, Defence Blog's May 26 report placed an Iraqi Army BTR-4 with Iraqi soldiers and allied volunteer fighters advancing from areas south and southwest of Fallujah. CENTCOM's June 28, 2016 account of the Fallujah operation described Iraqi security forces clearing the city after fierce fighting and noted coalition air, intelligence, advice, and assistance support to Iraqi government fighters.
Sources: War Is Boring Jurf al-Sakhar, Oryx ISIS Iraq Equipment 2014, Defence Blog Fallujah BTR-4, CENTCOM Fallujah Success
Narrative
The documented Iraqi Army role was protected movement and direct fire support for ground forces in urban and semi-urban operations against ISIS. In the Jurf al-Sakhar account, BTR-4s accompanied mechanized columns after artillery and rocket fire prepared the assault. In the Fallujah reporting, the vehicle appears with Iraqi forces moving toward one of ISIS's major Anbar strongholds.
The Islamic State side of the record is narrower. Oryx documents captured BTR-4 possession inside Iraq, not a dated BTR-4 fire mission by ISIS. For this detail page, that supports captured-equipment presence in the conflict rather than a broader claim about sustained Islamic State tactical employment of the vehicle.
Sources: War Is Boring Jurf al-Sakhar, Defence Blog Fallujah BTR-4, Oryx ISIS Iraq Equipment 2014, CENTCOM Fallujah Success