This article examines cognitive ethnography as an interdisciplinary methodological approach that expands the analytical scope of anthropology by shifting attention from narrated meanings and retrospective interpretations toward cognition in action. While interpretive anthropology has significantly contributed to the understanding of culture through symbols, narratives, and systems of meaning, many cultural practices depend on tacit, embodied, and situated cognitive processes that cannot be fully captured through interviews or verbal accounts alone. Cognitive ethnography addresses this limitation by conceptualizing cognition as a distributed process emerging through the interaction of bodies, tools, environments, spatial arrangements, and social relations. The article argues that cognitive ethnography bridges interpretive ethnography and laboratory-based cognitive approaches. It preserves the complexity of real social contexts while enabling a more systematic analysis of cultural cognition. Drawing on the concepts of distributed cognition, situated learning, and cultural technologies, the study demonstrates that cognition emerges through the dynamic relationship among body, mind, environment, and social interaction rather than residing solely within the individual mind. Using theoretical discussion and examples from Iranian cultural contexts—including carpet weaving, Ta’zieh performance, and the Zār ritual—the article illustrates how cultural meaning is produced through embodied coordination, sensory regulation, spatial organization, and interactional sequencing. It also explains how the Modification–Taxonomy–Queuing (MTQ) analytical process enhances the transparency and rigor of ethnographic interpretation by reconstructing the sequential organization of action and decision-making. Finally, the discussion addresses the methodological and ethical limitations of cognitive ethnography, including the risks of cognitive reductionism and the use of observational technologies. The article concludes that cognitive ethnography should be understood as a complementary approach that offers new analytical perspectives on the relationship among culture, cognition, embodiment, and social action.