Skilled human resources are one of the major binding constraints to sustain high economic growth in Iran. The country therefore, needs to invest significantly in human capital to reap the benefits arising from economic advancements demanding critical TVET reformation, expansion and innovative strategies. For this, Technical and Vocational Training Organisation of Iran has taken some innovative initiatives to not only restructure the country’s TVET system but also provide inclusive training opportunities which include youth and young women in remote rural regions. The paper however, explores the major features of the Iranian Government’s new initiative–skill empowering rural and less developed areas with sustainable employment approaches. It aims to discuss theoretical bases, policies, and practical aspects of this newly launched TVET scheme focusing on youth and women skill empowerment for employment sustainability in rural less developed areas in Iran. It also tries to examine the scheme’s possible outcome and obstacles in practice followed by some suggestions and lessons learned from the framework implementation. It presumably gives some insight which can be shared with TVET policymakers and practitioners from other societies.