Milk production by native dairy animals in Iran does not suffice the national demands due to increased human population growth, awareness of the health benefits of milk and its by-products, and improved living standards. Since1933  that high-producing European and North American dairy cattle have been imported to Iran, this new enterprise, despite confronting many problems initially, has grown gradually. At present, although 30% of total milk in the country is provided by this industry, it still faces many challenges. There is evidence that the most important challenge is the lack of scientific approach in the management of high-producing herds, being developed through application of diverse scientific approaches over a long period of time. These dairy cattle can efficiently produce high amounts of milk and meat under the mild climatic condition of Europe and parts of North America, having access to high amount of high-quality feed, and with implementation of high sanitation programs. Therefore, producers of imported dairy cattle under different climatic conditions of Iran, must be familiar with proper management of dairy cattle and calves, such as providing proper housing, feeding and sanitation, as well as being able to implement appropriate new technologies such as breeding methods. Low attention to these important points resulted in problems in milk production and reproduction. The aim of this paper is to highlight the most important factors affecting the management and the methods of applying scientific procedures for optimal performance of dairy herds. Here, we have tried to review the current challenges of the dairy industry in Iran, and present practical suggestions for mitigating the related problems.