The quest for expanding influence in Central Asia has long been a pursuit for India and Iran, driven by historical, cultural, economic, and strategic imperatives. This article seeks to understand why these two countries have not been able to materialize their shared goal despite possessing high potential and a common desire. Drawing on the theoretical framework of neoclassical realism, this study highlights how systemic constraints, particularly those imposed by the U.S., have impeded India’s efforts to draw closer to Iran and thwarted the finalization of crucial joint infrastructure projects, such as INSTC and the development of Iran’s Chabahar port. Key to these constraints is the regional strategy employed by the U.S., which aims to bind India within the Indo-Pacific alliance-building framework while isolating Iran through sanctions regimes. Employing the process tracking method and drawing insight from national documents and statements of senior officials, this research sheds light on the complex interplay of international system dynamics impacting the pursuit of India and Iran’s regional ambitions.