Crowds were marching on Monday, heading out from a dozen points in the Iranian capital toward Tehran Azadi, or Freedom Square. Marchers walked down the street chanting, "Death to Israel".
In a speech at Tehran's Azadi (Freedom) square, Rouhani said USA efforts to isolate Iran would fail.
Rouhani lambasted calls from the United States and Europe for a fresh agreement to curb Iran's missile program.
Iran's President Hassan Rouhani speaks during a ceremony to mark the 40th anniversary of the Islamic Revolution in Tehran, Iran, Feb. 11, 2019.
On Feb. 11 that year, Iran's military stood down after days of street battles, allowing the revolutionaries to sweep across the country while the government of Shah Mohammad Reza Pahlavi resigned. It later broadcast footage showing crowds across the country of 80 million.
Others carried pictures of Ayatollah Ruhollah Khomeini, the Shi'ite religious leader whose return from exile led to the ouster of Iran's Shah.
Rouhani also vowed Iran would defeat US sanctions, reimposed after President Donald Trump withdrew from Tehran's nuclear accord with world powers previous year.
In the backdrop to Monday's marches, the military displayed Iranian-made missiles, which authorities showcase every year during anniversary celebrations and which now have a range of up to 2,000 kilometres (1,250 miles) and are able to Israel and USA military bases in the region.
"The Iranian people have and will have some economic difficulties but we will overcome the problems by helping each other", he said.
Gen. Qassem Soleimani, the head of Iran's elite Quds Force, attended a rally in the southern city of Kerman.
Mahmoud Hemmati, 35, was pushing his 68-year-old mother, Parivash Fakheri, in a wheelchair.
"I'm impressed by everything I've seen here, of course you cannot show everything, but these missiles you see behind - these missiles can go very far, against any enemy, including Iran's proxies in our region", Netanyahu said on a visit to the naval base in Haifa.
"Much to the dismay of America, the revolution has reached its 40th year", read one banner.
Today, as part of the jihad-exporting regime's celebration of the Islamic Revolution, the infamously anti-Semitic and anti-Israel government made a decision to once again casually threaten to attack the Jewish state.
Last week, Iranian Supreme Leader Ayatollah Khamenei claimed that Iran's infamous "Death to America" chanting is intended not at the United States as a whole, but merely at President Trump. "The regime in Iran has produced only #40YearsofFailure", he wrote.
"Hundred years ago, a large part of Iran was separated".
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