People from different walks of life have attended the processions with flags of Iran and banners in support of the Islamic Republic to mark the revolution's ruby jubilee.
The events commemorate the collapse of the USA -backed government of Shah Mohammad Reza Pahlavi after the Ayatollah Ruhollah Khomeini's 1979 return from exile.
State TV showed large crowds defying frigid weather and carrying Iranian flags while chanting "Death to Israel, Death to America", trademark chants of the revolution.
In an official White House Twitter video post, Bolton taunted Sayyid Ali Hosseini Khamenei, the current Supreme Leader of Iran.
But despite the official festivities, today's Islamic republic faces acute economic challenges as it struggles with a mix of domestic hardships and USA sanctions.
"After 40 years, the Islamic Republic of Iran has failed to fulfill its promises to uphold and safeguard the rights of its citizens", Bolton tweeted Monday morning.
Prices of basic foodstuffs, particularly meat, have soared since President Donald Trump withdrew Washington from the 2015 nuclear deal a year ago and reimposed economic sanctions. Iranian people have and will have some economic difficulties but we will overcome the problems by helping each other, ' Rouhani said.
But he remained defiant on Monday as Iranians recalled the end of a monarch who catered to the rich.
President Hassan Rouhani told a crowd in Tehran that Iran's enemies will not achieve what he called their evil goals.
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Prime Minister Benjamin Netanyahu on Monday threatened the Iranian regime with destruction after an Iranian military leader warned that the Islamic Republic would raze major Israeli cities if the USA attacked it.
Following reports of a second failed space launch by Iran in less than a month, the U.S. State Department last week called for "tougher global restrictions to deter Iran's missile program".
Today, Iran enjoys influence through proxies in Iraq, Syria, Lebanon and Yemen, raising concerns in Sunni Saudi Arabia, which accuses its rival of trying to dominate the Middle East. Tehran denies the allegations.
"The world saw when Iran chose to help people of Syria, Iraq, Lebanon, Palestine and Yemen, they achieved victory".
"The presence of people in this celebration means that plots by the enemies ... have been defused", Rouhani said.
Some Iranians criticise their leaders for what they say are foreign adventures which squander funds.
Despite Iran's efforts to hide the facility, Israel has nevertheless discovered, tracked and uncovered it, the network said, as part of its effort to thwart Iran's military entrenchment in Syria.
Iran displayed its ballistic missile capabilities during Tehran rally, parading two missiles capable of reaching up to 800 kilometres. Iranian state TV, which said millions participated in the celebrations, ran archive footage of the days of the uprising and played revolutionary songs.
"The enemy can not ask us to leave the region".