This study explores the possibilities and challenges of teaching English as a foreign language (EFL) based on multiliteracies perspectives within New Literacy Studies (NLS). Teaching materials were developed for a group of Iranian EFL learners based on the four principles of NLS and were taught based on the same principles aiming at creating alternative language learning experiences. Class recordings, fieldnotes, interviews, and learners' notebooks were collected as our data over three months, and were analyzed based on a grounded theory approach through coding procedures in search of emerging ideas about NLS-based EFL pedagogy. The findings revealed four possibilities: relevance to learners, their active engagement, their self-reliance, and owning the language forms. The challenges appeared to be stemming from preconceptions of the teacher and the students about language teaching, learning, and assessment. We discuss aspects of such opportunities and challenges in Iran, with possible implications for many similar EFL settings.