The story of Rostam and Esfandiar in Ferdowsi’s Shahnameh is one of the most prominent epic-tragic narratives in Persian literature. Beyond its literary, mythological, and historical significance, it possesses considerable dramatic, educational, and cultural potential. By portraying the conflict between two of Iran’s greatest heroes, Rostam and Esfandiar, the story provides a rich framework for exploring concepts such as power, morality, responsibility, freedom, destiny, and national identity. The present study aims to analyze the dramatic dimensions of this narrative and examine its role in shaping the cultural identity of Iranian adolescents through the lens of Aristotle’s theory of tragedy. The main research question investigates how Aristotle’s six elements of tragedy—plot, character, diction, thought, melody, and spectacle—are manifested in the story and how these elements contribute to the transmission of cultural and identity-related values among adolescents. The research employs a descriptive-analytical method based on library research and textual analysis of both theoretical sources and the Shahnameh. The findings indicate that the story possesses a coherent tragic structure and demonstrates all six Aristotelian elements in a highly developed form. Its causally connected plot, multidimensional and believable characters, dramatic dialogues, epic and musical language, profound ethical and social themes, and strong visual and theatrical qualities create an effective medium for conveying values such as freedom, justice, wisdom, responsibility, patriotism, and cultural belonging. Furthermore, the study reveals that adapting the story into theatrical performances, traditional storytelling, animation, educational media, and other contemporary artistic forms can play a significant role in strengthening adolescents’ cultural identity and deepening their familiarity with Iran’s literary, historical, and linguistic heritage. The study concludes that Rostam and Esfandiar is not merely an epic narrative but also a powerful identity-forming cultural text whose dramatic and educational capacities can contribute meaningfully to the preservation and transmission of Iranian cultural values among younger generations in the contemporary world.