Two Iranian border guards and one Taliban fighter were killed after shooting broke out near a border post between Iran and Afghanistan, a Taliban spokesman and Iran's state media said on Saturday.
It was not immediately clear what had provoked the incident, in which several people were also injured, but it came amid tensions between the two countries over water rights.
Iran has accused Afghanistan's Taliban rulers of violating a 1973 treaty by restricting the flow of water from the Helmand river to Iran's parched eastern regions, an accusation denied by the Taliban.