In recent decades, negative propaganda associated with “Islamophobia” and “Iranophobia” has been systematically disseminated to manipulate global public perception of Iran and Islam. Addressing these misrepresentations necessitates strategic cultural policymaking aimed at reaffirming Iran’s status as a significant center of culture and civilization. This study examines Iran’s cultural and historical heritage, with a particular focus on the role of museums in contemporary cultural diplomacy. Employing a descriptive-analytical methodology, the research first conceptualizes cultural diplomacy and its functions before assessing the contribution of Iran’s cultural and historical heritage to its diplomatic strategies. Lastly, it explores the instrumental role of museums in preserving and projecting this heritage as a means of enhancing Iran’s cultural diplomacy on the global stage. This study seeks to address two central research questions: To what extent does Iran’s cultural and historical heritage contribute to the development of cultural diplomacy? And how can museums serve as instruments for advancing the objectives of cultural diplomacy? The findings indicate a notable distinction between the role of museums in traditional and contemporary frameworks of cultural diplomacy. In the traditional paradigm, museum policies were largely shaped by colonial imperatives, asymmetrical power structures, and the assertion of cultural superiority. Conversely, in the contemporary era, museums function as facilitators of intercultural dialogue, emphasizing cultural convergence, interaction, and shared heritage. This study offers an in-depth analysis of Iran’s cultural and historical legacy and the potential of its museums in diplomatic engagements, ultimately providing practical recommendations for the enhancement of cultural and diplomatic policies.