Bacuna was a first-team regular during his first season at Villa after moving from Groningen in 2013, but found opportunities hard to come by under Tim Sherwood last term.
The 23-year-old only made 10 league starts in 2014-15, but his performances have impressed the Villa hierarchy and he has been rewarded with a new deal.
"I am absolutely thrilled to sign a new contract and continue my time at Aston Villa," he told the club's official 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."