State TV says the drills involve ground forces of the Guard, Iran's most powerful military force, around the city of Sirjan in the country's south. It showed tanks and artillery attacking hypothetical enemy positions.
The broadcast says the aim of the exercise is to upgrade the capabilities of the Iranian forces. It did not elaborate.
The war games are taking place amid escalating tensions between Iran and the West over Tehran's disputed nuclear program. Israel has hinted that it may take military action if talks fail to get Iran stop its uranium enrichment program.
The U.S. and its allies accuse Iran of seeking nuclear weapons, a charge Tehran denies.