Although Alizadeh had won a Bronze medal, the Iranian Ministry of Sports and Youth Affairs vowed to give her 300 gold coins, almost $94,000, which is the same reward it gives to gold medallists.
The City Council further rewarded her with $14,000 in cash in a ceremony held in Karaj, according to a report by Asr-e Iran.
She also received an Iranian-made car from a sponsor, which is reported to be worth $10,000.
Earlier, President Hassan Rouhani had hailed Alizadeh as a young lady who became the symbol of the presence of Iranian women in the games.
The 18-year-old athlete made Iranian history after she won an Olympic bronze medal in the -57kg class of taekwondo competitions.