Images from State television showed the launch of the missile.
Iran said in its announcement on Saturday that the Khorramshahr missile could carry several warheads.
The timing of the test was not disclosed by the broadcaster, although officials had said yesterday that it would be tested "soon".
The missile was launched from an unknown location. The new missile represents a leap forward in Iranian missile technology that puts the state of Israel right in the crosshairs.
On Friday, the Iranian armed forces commemorated the 1980-1988 war with Iraq by holding a parade in which Iran's most advanced military power and abilities are showcased.
"As long as some speak in the language of threats, the strengthening of the country's defense capabilities will continue and Iran will not seek permission from any country for producing various kinds of missile", Defence Minister Amir Hatami said in a statement Saturday.
The move was a direct challenge to US President Donald Trump, who in August signed a bill imposing mandatory penalties on those involved in Iran's ballistic missile programme and anyone who does business with those involved in the programme. Even if those chances are slim, if Iran pushes Israel to the wall, they will nearly certainly respond. But Trump, who this week described the deal as an "embarrassment", is due to report to the US Congress on October 15 on whether or not he believes that Iran is in compliance.
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Rouhani, a moderate, has staked his reputation on sealing the nuclear deal and relieving the Iranian economy of debilitating global sanctions.
The next major deadline comes in October when Trump will decide whether to certify that Iran is complying with the agreement, known as the Joint Comprehensive Plan of Action.
French President Emmanuel Macron on Tuesday said that although the 2015 Iran deal was not ideal, the global community should stick with it or risk facing another situation like North Korea.
"We have to work in order to have a monitoring process on the ballistic activity of Iran." he told CNN.
The Khorramshahr is capable of carrying multiple warheads, according to Brig.
In early March, Iran tested a pair of Fateh-110 short-range ballistic missiles. "We can not allow it to happen.", Liberman said.