In the context of Iranian English as a Foreign Language (EFL) students, the interplay between computer literacy and anxiety is a compelling subject of inquiry. As we delve into the intricate dynamics, it becomes evident that uncovering the interface between computer literacy and anxiety is pivotal for enhancing the technological learning experience in Iranian EFL contexts. The current study aimed to explore the relationship between Iranian EFL learners’ computer literacy and computer anxiety. It further examined the differences among the EFL learners’ computer literacy and computer anxiety levels in terms of their gender. To gather the required data, computer literacy self-assessment scale and computer anxiety rating scale were given to 241 EFL learners. Statistical analyses were employed to examine relationships and gender-based differences. The Pearson product-moment correlation test revealed a significant negative relationship between computer literacy and computer anxiety. Furthermore, an independent samples t-test indicated significant differences in computer literacy between male and female participants. However, no significant disparity was found between the two groups in terms of their level of computer anxiety. An interview with 30 EFL learners also revealed deep-seated origins for heightened computer anxiety. Through meticulous content analysis, the study delved into the intricate factors contributing to elevated levels of anxiety related to computer usage among the participants. The findings carry pedagogical implications for technology-enhanced EFL educational contexts. In the context of technology-enhanced EFL education, the amalgamation of computer literacy and anxiety necessitates tailored teaching strategies and support mechanisms. This synthesis not only enhances technological literacy but also fosters a conducive atmosphere for effective language acquisition, paving the way for innovative and adaptive educational practices.