President Hassan Rouhani on Wednesday officially welcomed Grabar-Kitarovic who arrived in the Iranian capital the day before.
Later in the day, the two presidents signed two economic cooperation agreements.
President Rouhani said during a joint news conference with Croatia's president that the European country is of value to Iran because of bilateral "historical and cultural commonalities" as well as Croatia's geographical location, which makes it a gate for Iran to the entire European Union (EU).
In addition to economic issues, the two sides expressed their willingness to develop technological, scientific, academic, artistic and cultural ties, according to Rouhani.
He further noted that the two countries also stressed the need to cooperate with each other in fighting extremism.
The Croatian president, for her part, said Zagreb has always maintained "very good" and "friendly" relations with Tehran, which recognized Croatia right after its independence.
