This research aims to give an insight into the overall foreign policy of Iran and the prospects and challenges of Sino-Iranian relations. From a strategic and geopolitical point of view, Iran is significant in terms of the world s energy. The growing scarcity of energy impacts on the international political arena. The scarcity of energy has led to a situation where political power has gradually moved into the hands of those who possess the resources. The most important factor responsible for the steep rise in the global demand for energy is China. Sino-Iranian relations have expanded during the last decade which can be attributed to their reciprocal needs for energy security. With these facts in mind, this research paper aims to answer the following question: What are the prospects and challenges of the Sino- Iranian relationships for Iran s future foreign policy?