The necessity of compensating individuals for damages suffered is grounded not only in ethical considerations but also in established principles of Islamic jurisprudence and legal doctrine. Inspired by these foundations, the Iranian legislature has enacted various legal instruments, including the Civil Liability Act and the Criminal Procedure Code, to protect injured parties and ensure compensation for their losses. Nevertheless, the issue of compensating acquitted defendants has not been comprehensively addressed within the existing legal framework. Although the Criminal Procedure Code of 2013 provides for compensation in certain cases involving individuals who were detained during criminal proceedings and subsequently proven innocent, it does not adequately cover many of the material and moral damages suffered by acquitted defendants, particularly those who were not subjected to detention during the course of the proceedings. This study adopts a descriptive-analytical approach and draws upon library-based sources, statutory provisions, jurisprudential and legal doctrines, and judicial practice to examine the feasibility of compensating such individuals. The findings indicate that, despite certain legislative gaps, the existing capacities of the Iranian legal system—including general principles of civil liability, Islamic jurisprudential rules, and a broad interpretation of relevant legal provisions—provide a sufficient basis for compensating both material and moral damages sustained by acquitted defendants. These capacities can also serve as a foundation for the further development of judicial practice in this area.