In recent years, Iran has come to acquire a significant place in the West Asian region with the ability to influence regional politics. For India, relations with Iran are vital. In the changed strategic environment, both India and Iran have been working towards improving their bilateral relations. However, there are several challenges, especially for India, in this regard. If the Iran-US confrontation intensifies, for example, India may find it difficult to pursue a smooth relationship with Iran. This article looks at various facets of India-Iran relations and examines the opportunities and challenges that lie ahead.