The agricultural sector in Iran is the largest consumer of the country's water resources, accounting for more than 93% of total water withdrawals. Delegation and transfer of managerial responsibilities in the operation and maintenance of irrigation and drainage networks from the government to water users—particularly in the form of Participatory Irrigation Management (PIM) and Irrigation Management Transfer (IMT)—are modern approaches that have been pursued in many countries over recent decades to enhance efficiency and increase the sustainability of irrigation systems. The present study aims to identify the challenges and capacities of irrigation management transfer in five active irrigation networks of Kurdistan Province, including the Qeshlaq (Sanandaj), Garan (Marivan), Ziviyeh (Kamyaran), Legzi (Saqqez), and Sural (Dehgolan) networks. Research data were collected through reviewing technical and managerial documents, field observations, interviews with managers and experts, and administering a three-part questionnaire (specialized, specific, and general questions) among water users and operational staff of the networks. The results indicate that although water users in the province show a considerable willingness to participate in network management, numerous institutional, social, managerial, and technical challenges hinder the full realization of the management transfer program. The main obstacles include ambiguity in land ownership, heterogeneity of local structures, weak culture of participation, insufficient capacity building and training, deteriorated infrastructure, institutional inconsistencies, financial constraints, and limited mutual trust between the government and water users. Nevertheless, the findings suggest that establishing transparent institutional mechanisms, strengthening the technical and social capacity of water users, rehabilitating and improving networks, creating economic and managerial incentives, and empowering water user associations can facilitate the successful implementation of IMT in these five networks. The results of this study can be used in formulating participatory management policies and improving water-use efficiency in the irrigation networks of Kurdistan Province.