The Iranian team has been pitted against DPR Korea, Saudi Arabia and Myanmar.
Host Indonesia, meanwhile, drew Hong Kong, Laos and Chinese Taipei in Group A.
Group B has Thailand, Uzbekistan, Bangladesh and Qatar, while Group C will see 2014 bronze medalist Iraq, China PR, Timor-Leste and Syria.
Japan was the seeded team in Group D and they were drawn with Vietnam, Pakistan and Nepal.
Defending champion Korea Republic will have Bahrain, Kyrgyz Republic and Malaysia for company in Group E.
The U-23 tournament, which allows each country to field three overage players, will see 24 teams vying for honors.
The top two teams in each group along with the four best 3rd placed teams will advance to the Round of 16.
Men's football will be contested on August 14 to September 1 in Jakarta and Palembang.