The Asia/Oceania Zone was one of the four zones within Group 3 of the regional Davis Cup competition in 2016. The zone's competition was held in round robin format in Tehran, Iran, in July 2016. Two nations won promotion to Group II, Asia/Oceania Zone, for 2017 and two nations got relegated to Group IV, Asia/Oceania Zone, for 2017.
Participating nations
Draw
Date: 11–16 July 2016
Location: Enghelab Sports Complex, Tehran, Iran (clay)
Format: Round-robin basis. Two pools of four and five teams, respectively (Pools A and B). The winner of each pool plays off against the runner-up of the other pool to determine which two nations are promoted to Asia/Oceania Zone Group II in 2017.
Seeding: The seeding was based on the Davis Cup Rankings of 7 March 2016 (shown in parentheses below).
{ | class="wikitable" !width=25%|Pot 1 !width=25%|Pot 2 !width=25%|Pot 3 !width=25%|Pot 4 |- | (87) (90) | (93) (95) | (96) (97) | (99) (100) (103) |}