President Mahmoud Ahmadinejad said the plane could serve as a "messenger of death", but that its key message was one of friendship.
Iranian state TV later showed the "Karrar" aircraft in flight.
It said it had a range of 1,000km (620 miles) and could carry two 250-pound (115kg) bombs, or a precision bomb of 500 pounds.
The plane is the latest in a series of new pieces of military hardware unveiled by Iran.
"This jet is a messenger of honour and human generosity and a saviour of mankind, before being a messenger of death for enemies of mankind," President Ahmadinejad said after unveiling the Karrar at a ceremony with defence officials.
"The key message is friendship," he added. "We must make efforts to render all the enemy's weapons useless with our defence potential."
AP has more information in this article, but there seems to be some confusion over the capabilities of the UAV in terms of payload.
By: Shelldrake
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