The South Caucasus is a strategic region at the crossroads of Europe and Asia, owing to its geographical location, rich natural resources, and cultural and historical diversity It has consistently attracted the attention of regional and extra-regional powers. This region, comprising Armenia, Azerbaijan, and Georgia, plays a significant role in global trade and regional security as a gateway for East-West and North-South transit routes. The Zangezur Corridor has become a transit route at the heart of geopolitical competition between regional and extra-regional powers. This corridor not only impacts regional political and security developments but also carries significant implications for Iran's national interests in various fields. Politically, the Zangezur Corridor could lead to a weakening of Iran's transit role in the region. From a security perspective, this corridor could increase tensions along Iran's northern borders and create challenges for regional development. Furthermore, a reduction of Iran's influence in the Caucasus and increased competition with actors such as Turkey and Russia are other potential consequences of this project. Economically, Iran could lose a portion of its transit revenues, and competition in regional trade could intensify. Employing a descriptive-analytical method and gathering data through library and documentary sources, the present study seeks to analyze the role of the aforementioned corridor across various dimensions, as well as the impact of regional and extra-regional powers on the interests of the Islamic Republic of Iran. The research concludes that Iran must mitigate the negative effects of the opening of this corridor through active diplomacy, enhancing regional cooperation, and developing alternative routes. Otherwise, Iran will face serious challenges in maintaining its position compared to regional and international countries.