Iran is facing a serious environmental crisis, the severity and scope of which have attracted global attention. Environmental crises in Iran have also had economic, social, health, and policy impacts. Experts and specialists believe that failure to address this issue can pose a significant threat to the country’s security and stability. Therefore, some experts and policymakers are looking for solutions to reduce environmental crises as much as possible and minimize their negative consequences. In response to this concern, this chapter analyzes the necessity of sustainable entrepreneurship development in Iran to deal with environmental crises and identify challenges facing sustainable entrepreneurship development. The findings indicated that water scarcity, natural resource degradation, pollution, accumulation of waste, and climate change are Iran’s most important environmental issues. The study showed how sustainable entrepreneurship using eco-friendly technologies and strategies can significantly solve environmental problems. However, sustainable entrepreneurship development in Iran faces various challenges, including high initial cost, high interest rates, and long-term payoff, changing the mindset of people about the environment and environmentally friendly goods, as well as technological, infrastructural, legal, and policy limitations that must be overcome.