The first Persian envoy to Denmark arrived in 1691 in order to negotiate the release of the Iranian-owned cargo of a Bengali ship seized by the Danish fleet. The Iranian diplomat had been issued with diplomatic credentials by Suleiman I of Persia (Shah 1666-1694) and opened negotiations with King Christian V of Denmark. He was unable to secure the release of the cargo.
Also in 1933, with the arrival of Danish engineers in Iran, technical cooperation commenced. In the same year a contract was signed with the Danish engineering firm of Kampsax A/S to construct the trans-Iranian railway line. Five years later, on 25 August 1938, with the opening of the North- South railway line the Iranian dream of connecting the North to the South by rail came true.
Following a state visit in 1958, Iran established an embassy in Copenhagen. More specifically, the mission in Copenhagen was launched on 19 February 1959 and Ali Asghar Nase was appointed Iranian ambassador.
The 2006 Muhammad cartoons controversy saw the Danish embassy to Iran attacked by protesters and the Iranian Ambassador to Denmark called to Tehran; thus straining political and economic interaction between the two countries. In 2010, the Iranian Foreign Ministry's Director General for Northeastern Europe Behnam Behrouz and the Deputy Danish Foreign Minister Anne Steffensen spoke of expanded commercial ties. Steffensen said "Danish companies will be encouraged to boost their activities in Iran's market and we hope that the resolution of Iran and the West's nuclear standoff would pave the way for further expansion of ties in all areas." She also said the US-backed sanctions on Iran would have no bearing on bilateral economic relations.
On 30 October 2018, the Danish Security and Intelligence Service (DSIS) announced that they suspect Iranian Intelligence agencies was operating in Denmark, and that they were planning to kill the leader of ASMLA, who lives there. Denmark responded by recalling their ambassador in Tehran.
- Agreement on a Danish Government loan to Iran (with annex and exchange of notes). Signed at Copenhagen, on 2 November 1967
- Protocol on economic, industrial, scientific and technical co-operation. Signed at Copenhagen on 4 December 1974
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- Iran, Denmark Co-op in Catalyst Production
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- Iran, Denmark mull expansion of ties
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- "Danmark hjemkalder sin ambassadør i Iran". nyheder.tv2.dk (in Danish). 30 October 2018. Retrieved 30 October 2018.