Over the last several years, the number of international students attending colleges and universities in Malaysia has increased substantially. While the number of international students pursuing undergraduate and post graduate studies in Malaysian higher education institutions has increased, it is curious that some limitations and challenges exist to these students in their academic life. The main objective of this case study was to explore the challenges of Iranian students, as the largest group of international students in Malaysian higher education institutions. The research question formed in this study was: What challenges and difficulties do Iranian students face in Malaysian higher education institutions? Data were collected through semi-structured interviews of 21 Iranian postgraduate students pursuing their studies in both Malaysian public and private universities. Consistent with the result of previous studies, the following challenges were found: financial matters, visa, culture and insurance. The findings of the current study have useful implications for policy makers and managing bodies of educational institutions that seek to attract international students.