The state-of-the-art airbag - which the automobile company just debuted at the Geneva Motor Show - is located right under the hood of the 2013 Volvo V40, the New York Post reported.
It pops out when the car crashes into a person while traveling at speeds between 12 and 30 mph.
That's the range in which many pedestrians are struck.
Designers said that the first-of-its-kind airbag cushions an area of the windshield that many car-crash victims slam into.
Seven sensors located on the front of the car determine if it has come into contact with a human leg before it deploys, according to Popular Mechanics.
Once it inflates - which is done in less than a second - the airbag raises the hood about 4 inches, which helps soften the impact on the pedestrian.
In addition to the airbag, the Volvo comes with an extra-sensitive detection system that applies brakes when a person steps in front of the car, the magazine reported.
The system - which kicks in if the driver doesn't brake fast enough - can stop the car when it's going up to 21 mph. It can also force the car to slow down at higher speeds.