The women team defeated Thailand 23-16 in the semifinals.
Iran will play powerhouse India on Friday in the final match.
The Iran’s men’s team also made history, defeating giant India 27-18 in the semifinals.
Team Melli will meet South Korea in the final match on Friday.
The 2018 Asian Games, officially known as the 18th Asian Games and also known as Jakarta Palembang 2018, is a pan-Asian multi-sport event scheduled to be held from 18 August to 2 September in the Indonesian cities of Jakarta and Palembang.
The athletes compete in 465 events across 40 sports and 67 disciplines.