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ABSTRACT Background and Aims This study explores the lived experiences of medical tourists in Shiraz, Iran, a major destination for patients from Arab countries. Understanding these experiences is essential to inform health policy and improve the development of the medical tourism sector. Methods In this phenomenological research which was conducted in 2023, medical tourists at Shiraz hospitals and clinics were recruited using purposive sampling. Data were collected through semi‐structured interviews until saturation and analyzed using Colaizzi's method and MAXQDA 2022 software. Trustworthiness was ensured following Guba and Lincoln's criteria. Results Overall, 16 Arab medical tourists were interviewed, revealing a range of diverse and conflicting perceptions. Analysis of the data identified 674 meaning units, 137 codes, 35 subthemes, and 10 themes, reflecting the participants' positive and negative experiences. Five themes captured positive aspects: an exceptionally smooth and inviting entry experience, exemplary medical excellence, delightful and memorable accommodation experience, vibrant and enriching urban hospitality, and an amazing tourist attraction. The remaining five themes highlighted negative aspects: inadequate travel facilitation, difficult access to quality care, inadequate accommodation services, uncomfortable citywide processes, and suboptimal tourism‐related services. Conclusion This phenomenological study highlights how these factors shape positive encounters, while systemic gaps create challenges. It advances theories on patient‐centered care and cross‐cultural communication, underscoring the need for contextually grounded approaches in medical tourism policies and practices.