This study aims to examine the intercultural competencies of Chinese tourists in Iran and analyze their impact on cultural interactions between tourists and the host community. The necessity of this research arises from the growing importance of intercultural interactions in the tourism industry, where intercultural competence can help reduce cultural misunderstandings and foster mutual understanding. The research employs a descriptive-analytical and survey-based methodology and Due to the lack of specialized Chinese language guides; sampling was conducted purposively. Data were collected through both in-person and electronic questionnaires distributed to 30 tour guides with experience in interacting with Chinese tourists. Data analysis was conducted using the structural equation modeling software Smart-PLS. This software is capable of performing complex analyses. The findings reveal that intercultural competence comprises four key dimensions: intercultural action, cultural difference awareness, cultural appreciation, and cultural responsibility. These dimensions have a direct and significant impact on positive interactions between tourists and the host community. However, the relationship between intercultural competence and active participation was not statistically significant, indicating a need to create more opportunities for tourist engagement. The results also underscore the critical role of tour guides in mitigating misunderstandings and enhancing tourists’ experiences. The study suggests that investing in intercultural skills training and the development of digital infrastructure can enhance the tourism experience in Iran and strengthen the country’s position in international markets.