The crime of property damage is one of the most significant offenses against property and ownership. In addition to infringing upon the material integrity and economic value of property, certain instances of this offense may also affect public order and collective interests. Employing a descriptive-analytical method, the present study examines the concept, legal characteristics, jurisprudential foundations, and legislative developments concerning the crime of property damage under Iranian criminal law. The findings indicate that, in its general sense, property damage is an intentional, result-based, and generally instantaneous offense, the commission of which requires the occurrence of attributable harm to property belonging to another person. The grounds for its criminalization are not limited to the protection of ownership but also encompass the prohibition of causing harm, the preservation of public order, the protection of collective interests, and the necessity of criminal intervention. The legislative developments concerning Article 677 of the Islamic Penal Code, particularly the modification of the statutory damage threshold and the increased role of financial assessment in determining the type of punishment, demonstrate a tendency in criminal policy toward reducing reliance on imprisonment and ensuring greater proportionality in criminal responses. Nevertheless, uncertainty regarding the time and method of damage assessment, as well as the impact of economic fluctuations on the statutory threshold, remains a significant challenge to this approach. Consequently, the effectiveness of criminal policy concerning property damage requires the establishment of clear criteria for damage assessment, adherence to the principle of proportionality, and greater harmonization between jurisprudential foundations and the requirements of criminal law.