In the digital age, the notion of privacy has significantly expanded to encompass various aspects of personal and informational life. With the growing reliance on cyberspace and emerging technologies, individuals are increasingly exposed to serious threats to their privacy, resulting in non-pecuniary damages that legal systems must address. This article aims to provide a comprehensive legal analysis of moral damages caused by privacy violations in cyberspace, with a particular focus on the Iranian legal framework. The research methodology is descriptive-analytical, relying on doctrinal legal analysis and comparative study of national laws, international documents, and relevant jurisprudence. The findings suggest that despite the existence of fragmented legal provisions in Iran, there remain substantial gaps in the recognition, proof, and compensation of moral damages resulting from digital privacy violations. Moreover, the lack of coherent judicial practice and enforceable legal remedies weakens the legal protection of privacy in cyberspace. The paper concludes by proposing legal and policy reforms to strengthen privacy rights and establish an effective framework for compensating moral damages in Iran. By offering a comparative and innovative approach, this study seeks to contribute to the advancement of legal policy in the field of digital privacy protection.