Pragmatic competence is widely recognized as an important component of effective communication, yet it is often underemphasized in EFL instruction and assessment. The present research examined whether explicit instruction in pragmatics could improve Iranian EFL learners’ recognition and production of appropriate compliment responses in English. Twenty-six female undergraduate students enrolled in the English Literature program at the International University of Qom participated in the study and were assigned to either a control group or an experimental group. Learners completed an MCDCT and participated in Skype-based interactions with native English speakers before and after the instructional period. The experimental group received three instructional sessions focusing on compliments and compliment responses, while the control group received regular instruction. The findings showed that learners who received explicit pragmatic instruction demonstrated significantly greater improvement in both recognizing and producing appropriate compliment responses. The Skype interview results further indicated that most learners successfully transferred their classroom-acquired pragmatic knowledge to authentic communicative situations. The outcomes of the study support the inclusion of incorporating explicit pragmatic instruction and authentic communicative tasks into EFL curricula may effectively promote learners’ pragmatic competence and intercultural communicative development.