EAP/ESP plays an important role in countries where English is used mainly for academic purposes. However, EAP/ESP programs have been developed without conducting a systematic needs analysis from both the students' and instructors' perspective. The purpose of the present study is to shed more light on the perception that Iranian undergraduate students and the faculty of Physical Education have of the English language needs of the students and the shortcomings of the commonly used textbook in EAP/ESP courses at universities. A total number of 112 students of P.E (47 male and 65 female) participated in the needs analysis procedure of the present study. They ranged from 21 to 27 years of age and were all undergraduates studying at the Physical Education Faculty, Ferdowsi University of Mashhad. Four P.E. faculty members, all holding Ph.D. were also interviewed. Results of the present study indicate that English is perceived as important by Iranian P. E. students and the faculty, and show discrepancy between the perceptions of the learners and instructors. The study has implications for curriculum design and instructional delivery of ESP/EAP courses for undergraduate P.E. students.