The collapse of the Soviet Union brought about major upheavals in Central Asia and the Caucasus. Among the newly independent states, those that were endowed with energy resources set out on the path of economic growth. The energy resources in Central Asia also attracted outside powers to the region. Moreover, the status of these countries as landlocked, and Russia's monopoly over energy pipelines, led these countries to search for new partners in order to reduce their dependency. This added a new dimension to the political, economic and security equations of the region. In this article, Turkmenistan is studied as a former Soviet republic and Iran as a regional actor that has interests in the region's energy dynamics. The role of energy in the relations between Turkmenistan and Iran is examined. The article proposes that the energy factor has produced a favorable atmosphere for closer relations between the two countries. However, Tehran needs to overcome a number of challenges in expansion of its relations with Turkmenistan, the most important of which is the United States' effective opposition to any Iranian initiative in the field of energy in the region.