International tourism development in theocratic structures where Islam exercises considerable influence over social, political, and regulatory systems embodies a range of challenges, complexities, and conflicts. Against this backdrop, this paper aimed at exploring the interactions between Islamic theocracy and tourism via an interpretivist approach. Saudi Arabia and Iran are both recognized as countries with a theocratic system of governance and serve as distinctive tourism destinations that provide cases for exploring the interaction between tourism and theocratic institutions and the implications for tourism practice. The study identified several key areas of theocratic influence on tourism, namely, policy‐making, marketing, and gender, and highlighted the complexities of developing tourism outside of pilgrimage and religious travel in theocratic environments. Theocratic conceptualization of governance alongside a framework for understanding the linkages between Islamic theocracy and tourism and implications of such connections are also proposed.