Post-industrial cities are increasingly recognising industrial heritage as an opportunity to stimulate heritage tourism. In this regard, it is important to examine the shifts and transformations that industrial heritage sites have experienced as priceless areas brimming with liveliness and vitality in cities. This chapter attempts to evaluate the challenges of industrial heritage sites and their future capacities for tourism development, with a focus on the city of Yazd as a less-studied but significant example of a textile manufacturing hub in Iran. The heritage of once-valuable buildings with distinctive architectural styles represents that era's legacy. However, due to preserving its original function, some of these buildings have deteriorated. The study adopts a qualitative approach, combining exploratory ethnographic methods of observation and semi-structured interviews with experts (N = 24). Results reveal that promoting the textile factories in Yazd can introduce a new means of developing industrial heritage tourism in Iran. A model is proposed for the development of industrial heritage tourism in Yazd as well as Iran overall.