Iranian state radio is quoting the country's defense minister as saying Iran's military capabilities "increased remarkably" after the construction of a new submarine.
General Mostafa Mohammadnajjar says the submarine is "smart," unmanned and has radar-evading capabilities.
Tuesday's report did not elaborate on its size and technical specifics, and did not say whether the submarine had been tested.
Iran occasionally announces production of advanced weapons. Since 1992, it has been active in producing military tanks, missiles, torpedoes, as well as guided bombs and airplanes.
But little is known about Iranian submarines, beyond announcements years ago that Tehran bought some Russian subs and was to produce its own, smaller-sized ones.
Three warships that set off on a mission from the Baltic Sea attracted close attention of the United States