The Iranian confectionery and chocolate industry has considerable potential for industrial upgrading, employment generation, and regional export development. Nevertheless, the accumulation of production capabilities has not translated proportionately into stable access to international markets and stronger inter-firm and institutional linkages. This study assesses the technological capabilities of leading Iranian confectionery and chocolate manufacturers and identifies the principal capability gaps and upgrading constraints. Drawing on an evolutionary perspective on technological learning and a capability-based framework adapted from the AFRICP approach, the study examines five dimensions: function, product, production process, end market, and linkages. An exploratory mixed-method design was employed, combining semi-structured interviews and structured capability scoring among ten leading firms with export experience and established domestic brands. To improve methodological transparency, dimension-specific scoring rules and an explicit aggregation procedure were applied. Because the end-market indicator showed no quantitative variation across the ten firms, its numerical score was treated as a descriptive indicator rather than as a discriminating component of the composite capability index; the distinction between domestic market strength and international market capability was subsequently examined through qualitative evidence. The findings indicate relatively strong capabilities in production processes and products, while substantial heterogeneity remains in functional capabilities and linkages. In particular, institutional and inter-firm linkages are weak, and international market relationships are often temporary and vulnerable to sanctions, currency-transfer constraints, and exchange-rate volatility. The results suggest that technological capability accumulation in the industry has been stronger than its conversion into sustained international market access and systemic upgrading. Accordingly, policy interventions should simultaneously address firm-level capability deepening, inter-firm and institutional coordination, export-market diversification, workforce development, and the institutional conditions required for learning and innovation.