Abadi arrived in Tehran on Wednesday and met with Iran's First Vice-President Eshaq Jahangiri.
Jahangiri in this meeting highlighted the historical and cultural commonalities between the two countries, and said the Islamic Republic of Iran seeks teh development of relations with Iraq.
"The Islamic Republic of Iran has always sided with the Iraqi nation and government, and supports peace, stability and development of… Iraq," he added.
Pointing to the threat posed by the Islamic State in Iraq and the Levant (ISIL) terrorist group, Jahangiri urged "cooperation and a steadfast stance" in the fight against acts of terrorism and extremism.
Abadi, for his part, described his second visit to Iran in less than a year as a testimony to the amicable ties between the two Muslim neighbors.
He said Iran and Iraq can "complement" one another in the regional and international arenas.
"Iran and Iraq should create an integrated front to counter terrorism," he added.
The Iraqi prime minster paid his first official visit to Iran in October 2014.