The Khaybar KH-2002 Rifle features a unique four-position fire selector lever which is situated toward the rear of the left side butt-stock behind magazine housing. The weapon, however, is not ambidextrous. The selector offers single shot, automatic fire and three-round burst options, with the safety selection in the forward position.
The DIO promotes the KH-2002 as a "low-recoil, highly accurate, lightweight" weapon, with "modular construction for easy maintenance" and a rotating bolt locking mechanism, presumably designed to facilitate ambidextrous firing, protected under a carrying handle that contains the rear sight. The carrying handle can also be used to mount optical or night sights.
The weight of the KH-2002 with the long barrel and an empty 30 round magazine is given as 3.7 kg. The weapon can also be fitted with an optional bipod and a bayonet. The KH 2002 appears to be made of two plastic shells, one holding the grip barrel and gas tube and the other housing the M16 type bolt and hammer.
Khaybar KH 2002 assault rifle is gas operated, selectively fired rifle of bullpup layout. It uses M16-type direct gas system with multi-lugrotary bolt locking. Polymer pistol grip with enlarged trigger guard is attached below the tubular barrel shroud. Safety / fire selector lever is located at the left side of the receiver, behind magazine housing and away from the pistolgrip. Ejection is to the right side only.
Feeding system uses M16-compatible magazines, with M16-style magazine release button located on the right side of the magazine housing. Sights are of open type, with rear sight being installed within a carrying handle. Additional equipment includes lightweight folding detachable bipods and knife-bayonet. According to the manufacturer, rifle is available with three styles of barrels: short(carbine), medium standard rifle and long Khaybar 2002 designated marksman rifle.
Khaybar KH 2002 assault rifle is a recent development of the Iranian Defense Industry Organization; this rifle was first shown in 2004 and is intended to replace the obsolete 7.62×51 HK G3 rifles of German origin, which are license-built in Iran since the Shah times. Khaybar KH 2002 assault rifle can be best described as a bullpup conversion of the Iranian S-5.56 rifle, which is a direct copy of the Chinese CQ assault rifle.