Beyond their physical function, sport and physical education hold significant social, cultural, and identity-building roles. They serve as powerful tools for fostering social cohesion, promoting cultural values, and facilitating intercultural interactions. This qualitative study aimed to explore the outcomes of cultural value development through physical education and sport in Iran, using grounded theory methodology with a constructivist approach based on Charmaz. The research sample consisted of 20 academic experts in the fields of sport management and sociology. Data were collected through semi-structured interviews and analyzed using MAXQDA 2020 software. The findings revealed four core categories related to the cultural impacts of sport: cultural identity and social interaction, awareness and virtue-based orientation, managerial strategies and sport governance, and sustainable health and psychological balance. The results suggest that sport can play an effective role in strengthening national identity, enhancing social capital, reducing cultural conflicts, and fostering intergenerational communication. Moreover, the study emphasizes the importance of culturally-oriented sport policies, particularly those aimed at younger generations, in reinforcing social and moral values. While current sport policies in Iran have predominantly focused on infrastructure development and elite athletic achievements, the cultural dimensions of sport have received limited attention. Therefore, adopting human-centered policies and designing educational programs that prioritize ethical and cultural transmission through sport may contribute to greater social cohesion and cultural sustainability in Iranian society.