The southern Abbas Abad iron skarn deposit is located in the western part of the Central Iran zone, SW edge of the Urumieh˗Dokhtar magmatic arc. The skarn alteration occurred mainly at the contact of the Abbas Abad gabbro and Triassic Nayband Formation. The Triassic Nayband Formation in the southern Abbas Abad area consists of limestone, shale, siltstone, and marl with interlayers of tuff. The Abbas Abad gabbro is calc˗alkaline with adakitic signatures and continental arc setting affinity. Four iron ore bodies occur along the NW˗SE trending normal fault along the southern margin of Abbas Abad gabbro within sedimentary host rocks of the Nayband Formation. Three main paragenetic stages of skarnification and ore deposition have been recognized: i) prograde stage, ii) retrograde stage, and iii) supergene stage. Spinel, garnet, and pyroxene formed during the prograde stage. Epidote, tremolite˗actinolite, calcite and ore minerals, such as magnetite, hematite-I, pyrite, and minor chalcopyrite formed the retrograde stage assemblage. Magnetite is the main economic ore mineral, which is diverse in terms of fabric and texture, including massive, disseminated, needle˗like, blade˗like, prismatic, crustification, and cubes. Stable isotope data from Abbas Abad iron skarn deposit indicated that the interaction of non-magmatic brine (connate) fluids with Triassic carbonate host rocks at high temperature and its mixing with meteoric water has led to changes in the isotopic composition of the mineralizing fluid. Subsequently, garnet and magnetite with relatively high estimated fluid δ18O values (average 12.3 and 14.6 ‰, respectively) formed from this modified fluid. The estimated δ18O values of fluid in equilibrium with calcite decreased as a result of the greater influx of the meteoric water into the hydrothermal system in the late stages of ore formation. Fluid inclusion data from this iron skarn deposit are consistent with minor boiling during the prograde stage, although cooling and dilution seem to be principally responsible for Fe precipitation. The petrogenetic model proposed for the Southern Abbas Abad iron skarn deposit suggests that during the Eocene a gabbroic stock intruded the sedimentary rocks of the Nayband Formation and acted as a heat source for the non-magmatic brine (connate and meteoric) fluids convection cells, then reacted with cooler Triassic carbonate rocks. In this model, leaching of the gabbroic rock provided the iron, whereas carbon came from degassing and dissolution of carbonate rocks during contact metamorphism-metasomatism.