The objective of this study was to evaluate the effect of dystocia on the reproductive performance and functional longevity in Iranian Holsteins. Data consisted of 1 467 064 lactation records of 581 421 Holstein cows from 3083 herds which were collected by the Animal Breeding Center of Iran from April 1987 to February 2014. Reproduction traits in this study included interval from first to second calving, days open and days from first calving to first service. The generalized linear model was used for the statistical analysis of reproductive traits. Survival analysis was performed using the Weibull proportional hazards models to analyse the impact of dystocia on functional longevity. The incidence of dystocia had an adverse effect on the reproductive performance of dairy cows. Therefore, reproductive traits deteriorated along with increase in dystocia score (p < 0.05). The culling risk was increased along with increase in the score of dystocia (p < 0.0001). The greatest culling risk was observed in primiparous cows, small herds and low-yielding cows (p < 0.0001). Also, the lowest culling risk was found for cows calving at the youngest age (<27 months), and cows with age at first calving >33 months had the greatest risk (p < 0.0001). The results of current study indicated that dystocia had important negative effects on the reproductive performance and functional longevity in dairy cows, and it should be avoided as much as possible to provide a good perspective in the scope of economic and animal welfare issues in dairy herds.