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A rocket carrying a Payam telecommunications satellite failed to reach orbit after it launched from the Imam Khomeini Spaceport on Tuesday.
Iranian Minister of Information and Communications Technology Mohammad-Javad Azari Jahromi announced the failed attempt on state TV.
Jahromi didn't explain precisely what went wrong with the operation, saying only that the rocket began encountering problems in the third stage of its launch.
Payam was designed to conduct imagery and telecommunication missions at an altitude of 500 kilometeres (311 miles).
Jahromi announced that Iran has another domestically produced satellite, called Dousti, waiting to be launched.
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