Background: Health literacy is essential for effective communication, patient education, and safe nursing care. This narrative review synthesized evidence on Iranian nurses’ health literacy and the factors related to it. Methods: International and Iranian databases were searched up to the end of 2025. Studies conducted in Iran among employed nurses reporting health literacy, eHealth literacy, health literacy strategies, related outcomes, or training interventions were included. A thematic narrative synthesis was performed. Results: Health literacy was reported as moderate to adequate (Shiraz: 70.06±12.98; Kashmar: 80.98±10.65; Tabriz: 75.9±13.3) and consistently showed a positive association with quality of life. eHealth literacy was generally moderate (eHEALS: 31.72±5.51) and was correlated with health-promoting lifestyle (r=0.565). Gaps were identified in key health literacy strategies. In addition, perceived behavioral control was the strongest predictor of both intention and behavior regarding health literacy. The Iranian HL-KES questionnaire demonstrated acceptable psychometric properties, and significant, relatively sustained improvements were reported following a health literacy educational intervention. Conclusion: Iranian nurses generally show moderate-to-adequate health literacy, but practical implementation gaps remain. Skills-based in-service training with organizational support and evaluation using validated local tools is recommended.