The event is underway in Tehran at the mausoleum of Founder of the late Imam Khomeini, southern Tehran.
A number of the senior Iranian officials and commanders are present in the ceremony including Iranian President Hassan Rouhani, Representative of the Supreme Leader and Secretary of the Supreme National Security Council Ali Shamkhani, Chief of Staff of the Iranian Armed Forces Major General Mohammad Baqeri, Commander of the Islamic Revolution Guards Corps (IRGC) Major General Hossein Salami, Commander of the Iranian Army Brigadier General Abdolrahim Mousavi, Iranian Police Chief Brigadier General Hossein Ashtari and a group of Iranian commanders, IRNA reported.
Meanwhile, a similar parade is simultaneously held in the southern Iranian port city of Bandar Abbas, Hormuzgan province.
Advanced military hardware and some other equipment of the armed forces are supposed to be displayed in the event.
The military planes and choppers will also fly over the parade.
Commander of Iranian air forces Brigadier General Azizi Nasirzadeh earlier said that home-made Kosar fighter will also fly in the defense show.
President Rouhani is to deliver speech in Tehran and Parliament Speaker Ali Larijani is due to address Bandar Abbas ceremony.
Reporter's code: 50101