During the parade on Friday, Tehran also displayed other ballistic missiles, which reportedly have a range of 1,300-2,000 km. Iran says it has no such plans.
Video of the test launch aired on Islamic Republic of Iran Broadcasting (IRIB) on Friday.
Speaking during Friday's parade, Iranian President Hassan Rouhani said Tehran would press ahead with strengthening its missile capabilities and military defenses, Press TV reported. At the time, President Trump tweeted that his administration would be less "kind" to Iran in the face of such tests. On Wednesday, he said he has made a decision on whether the USA will continue to abide by the deal, but he declined to elaborate.
"Whether you like it or not, we are going to strengthen our military capabilities which are necessary for deterrence", Rouhani said in a speech broadcast live on state television.
Reports say the new missile has a range of 1,200 miles and could carry several warheads.
Mr Trump has been critical of the 2015 nuclear deal the U.S. and other world powers struck with Iran.
US President Donald Trump addresses the United Nations General Assembly at UN headquarters in New York City, on September 19, 2017.
"We can not let a murderous regime continue these destabilizing activities while building unsafe missiles, and we can not abide by an agreement if it provides cover for the eventual construction of a nuclear program", Trump said, while also referring to the Iran nuclear deal as "an embarrassment" to the U.S.
Iran denies its missile development breaches the resolution and says its missiles are not created to carry nuclear weapons.
"On the path to improve our country's defensive capacity we will certainly not be the least affected by any threats and we won't ask anyone's permission", Brigadier General Amir Hatami said.
Rouhani has stated that this Trump government is looking to get "an excuse" to get out from the landmark 2015- nuclear arrangement which topped Iran's atomic activities in substitution for the lifting of worldwide actions against Iran.
Trump said on Wednesday he had made his decision but was not yet ready to reveal it. Washington has also taken aim at what it says is Tehran's failure to meet expectations that it would play a more stabilising role in the Middle East.