US President Trump imposed new sanctions on Friday
Iran is to launch missiles later as part of a military exercise despite US sanctions over a test firing last weekend.
The Revolutionary Guards' Sepahnews website said it would show their "complete preparedness to deal with the threats" and "humiliating sanctions" from Washington.
"Different types of domestically produced radar and missile systems, command and control centres, and cyber warfare systems will be used in this exercise," it said.
The missiles to be launched - according to a list published on the Guards' website - will only be very short-range, up to 75km.
President Trump imposed new sanctions on Friday after Iran tested medium-range missiles last Sunday and because of its support for Yemeni rebels.
The sanctions, which affect 13 people and 12 companies, came after the US said Iran was "officially on notice" after the test.
Writing on Twitter before unveiling the penalties, Mr Trump said: "Iran is playing with fire - they don't appreciate how 'kind' President Obama was to them. Not me!"
The new US Defence Secretary, James Mattis, labelled Iran "the single biggest state sponsor of terrorism in the world", but said America had no plans to increase troops in the region.
Despite the new penalties, it does not mean the US has abandoned the lifting of sanctions agreed after Iran halted its nuclear programme.
That deal was seen as one of President Obama's key international achievements, but Mr Trump has spoken of his disdain for the agreement.
The US government has warned the new sanctions will not be the last.
Iran is poised to hit back with restrictions of its own against American companies and individuals.
"In response to the new move by the United States of America and as a reciprocal action, (Iran) will impose legal limitations for some American individuals and companies that have had a role in the creation and support of extreme terrorist groups in the region," the foreign ministry said.
The country has also retaliated against the US travel ban on people from seven Muslim-majority countries, which includes Iran.
It has barred US wrestlers from this month's prestigious Freestyle World Cup competition.