ABSTRACT: This study analyses the Islamic Republic of Iran’s foreign policy through the lens of niche diplomacy and the emerging middle power concept. As global power structures transition toward multipolarity, Iran has adapted its foreign policy to maximize its influence despite enduring sanctions, regional isolation, and internal economic pressures. By leveraging its geostrategic location, energy resources, proxy networks, religious-ideological appeal, and regional connectivity, Tehran has developed specialized spheres of influence, enabling it to project regional leadership without relying on traditional power metrics. Employing a multidimensional framework, the study evaluates Iran’s niche diplomacy across four key domains: proxy networks, energy, corridor connectivity, and religious influence. It argues that Iran’s foreign policy represents a pragmatic recalibration of its revolutionary ideology, allowing Tehran to sustain strategic relevance in an increasingly fragmented global order. This analysis contributes to broader international relations debates on the agency of emerging middle powers in a post-unipolar world, particularly in understudied regions such as the Middle East.