Trade relations between Iran and India during the Pahlavi II period (1941–1979) were significantly influenced by the domestic developments of both countries as well as changes in the international system, despite the long-standing historical and cultural ties between them. However, previous studies have mainly concentrated on the political dimensions of bilateral relations, while their economic and commercial aspects have received comparatively limited scholarly attention. Using a descriptive–analytical approach and drawing upon archival documents, official reports, economic journals, customs statistics, and library sources, this study examines the structure, development, and major determinants of Iran–India trade relations during the Pahlavi II era. The findings indicate that crude oil was Iran’s principal export commodity and the main factor behind its favorable trade balance, whereas India primarily exported tea, spices, textiles, jute products, and, in later years, selected capital and industrial goods to Iran. The study also shows that the expansion of transportation routes, the activities of the Parsis of India, and the establishment of commercial agencies and trade delegations contributed to the development of bilateral economic relations. Nevertheless, India’s foreign exchange restrictions, the geopolitical consequences of Pakistan’s independence, administrative bureaucracy, smuggling, and the weaknesses of Iran’s commercial infrastructure prevented both countries from fully exploiting their trade potential. Overall, Iran–India trade relations during the Pahlavi II period were shaped more by economic policies and geopolitical developments than by their historical and cultural ties