Iran's first KFC branch was opened on Friday in Karaj, a suburb of Tehran, several news websites reported.
Ami-Hossein Alizadeh, the licence holder, said it took him five years to get the permission from relevant local authorities to re-open KFC in Iran.
KFC was closed in Iran following the 1979 Islamic revolution, due to its affiliation with the US, the country's political arch-enemy.
The Iranian administration has also prohibited any business activities which would symbolise Western culture, especially those that give a high profile to American brands.
Iranian police have in the past prohibited the sale of Barbie and Simpsons dolls for children.