Sr2IrO4 has often been described via a simple, one-band pseudo-spin 1/2 model, subject to electron-electron interactions, on a square lattice, fostering analogies with cuprate superconductors, believed to be well described by a similar model. In this work we argue -based on a detailed study of the low-energy electronic structure by circularly polarized spin and angle-resolved photoemission spectroscopy combined with dynamical mean-field theory calculations -that a pseudo-spin 1/2 model fails to capture the full complexity of the system. We show instead that a realistic multi-band Hubbard Hamiltonian, accounting for the full correlated t2g manifold, provides a detailed description of the interplay between spin-orbital entanglement and electron-electron interactions, and yields quantitative agreement with experiments. Our analysis establishes that the j 3/2 states make up a substantial percentage of the low energy spectral weight, i.e. approximately 74% as determined from the integration of the j-resolved spectral function in the 0 to −1.64 eV energy range. The results in our work are not only of relevance to iridium based materials, but more generally to the study of multi-orbital materials with closely spaced energy scales.