This study explores seasonal fluctuations in water quality and phytoplankton communities within Karun-4 Dam Lake, the largest double-arch dam in the Middle East situated in Iran. Employing a systematic approach, 26 sampling stations were strategically selected to collect surface water samples at a depth of 50 cm during the midpoints of each season throughout 2019. Significant seasonal variations in water quality parameters and phytoplankton composition were observed. Predominant species included Chrysophyceae (38%) and Bacillariophyceae (32%), indicative of nutrient-rich conditions, particularly during spring and summer, as evidenced by the eutrophic state (Carlson Trophic State Index: 59.43 and 53.96, respectively). Summer exhibited the highest diversity (Shannon–Wiener Index = 2.27) and lowest evenness (Pielou’s Evenness Index = 0.21). PCA and CCA analyses revealed season-specific preferences for nutrients and ions among phytoplankton species. Water temperature emerged as a crucial factor in spring and summer, while environments with elevated bicarbonate and alkalinity levels were less favorable during winter and fall. This study provides essential insights into Karun-4 Lake's dynamic ecological conditions, underscoring the necessity for ongoing monitoring to discern long-term trends and anthropogenic impacts for effective ecosystem management.