Service quality in higher education is of paramount importance worldwide. However, this issue has not been adequately addressed within the Iranian academia. Considering PhD programs, service quality is of enormous significance since candidates get prepared for their future careers as prospective faculty members. The current study thus seeks to explore the perceptions and expectations of Iranian academics on the quality of both academic and non-academic services they receive and the challenges they face. A number of Iranian TEFL-major professors and PhD students/candidates participated in this study. The SERVQUAL questionnaire, a validated and reliable instrument, was initially employed to quantitatively measure the five service quality dimensions (i.e., tangibles, reliability, responsiveness, assurance, and empathy). Following that, in-depth interviews were conducted to qualitatively uncover the hidden stories behind the perceptions and expectations of the participants. The participants generally perceived the service quality of their higher education institutions to be unsatisfactory and far from their expectations. They were confronted with a set of challenges which can be categorized as the following: educational, bureaucratic, economic, and socio-cultural. Finally, some solutions were suggested to alleviate the obstacles standing in the way of Iranian academics.