The cruise missile, designed for sea-based targets, is the latest addition to Iran's growing arsenal.
President Mahmoud Ahmadinejad attended a ceremony Tuesday that showed off the weapon, dubbed "Ghader," or "Capable" in Farsi.
Iranian state TV says it can travel at low altitudes and has a lighter weight and smaller dimensions.
Iran has an array of short and medium-range ballistic missiles capable of hitting targets in the region, including Israel and U.S. military bases in the Gulf.
In 2010, Tehran displayed other Iranian-made cruise missiles but with a shorter range.