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On 9 June 2017, Iliev was appointed as manager of First League club Vereya. Following a successful stint with Vereya, in December 2017 he returned as head coach to his hometown club Cherno More.

In mid May 2014, Iliev held final talks to become the manager of Angolan club Inter Luanda. Compatriot Petar Kostadinov was announced as his assistant. He returned to his country in 2016, being appointed as manager of Loko Plovdiv. Iliev came close to securing European club football for the team, as the "smurfs" finished in 5th place in the standings during the 2015/2016 A PFG. On 17 October 2016, following a 1–2 defeat by Lokomotiv GO, Iliev announced that he is leaving Lokomotiv Plovdiv. In early 2017, Iliev signed a contract to manage newly promoted Altai Semey from the Kazakhstan Premier League, but stepped down in February 2017, as the club eventually did not receive a license for the top division.

On 12 April 2013, he was fired by Levski Sofia and was replaced by Nikolay Mitov.

On 6 April 2012 it was announced that Iliev will be the new manager of Levski Sofia. He was to complete the season with Beroe and then start his new job at the beginning of the 2012–13 season. His contract will be until June 2015.

After retiring in 2004, Iliev pursued a career as a coach. In June 2004, he was appointed as a manager in his first club Cherno More Varna. However, on 3 March 2006, after a two years spell at the Sailors, he resigned after a home 0–1 loss against Rodopa Smolyan. Since 2006, he serves as the manager of Beroe Stara Zagora, making him one of the longest serving coach in a Bulgarian football club. Under his management in the 2009–10 season, Beroe won a historical first Bulgarian Cup and consequently achieved a participation in the UEFA Europa League qualification stages. Iliev has been voted best coach in the Bulgarian championship for the season 2009–10 by the association of Bulgarian football players.

Iliev earned his first cap with Bulgaria in a friendly match against Turkey on 21 August 1991 in Stara Zagora. He registered 34 caps for his country, scoring three goals. Iliev was part of the Bulgarian squad at the 1998 FIFA World Cup in France, where he played in three games.

Iliev was born in Varna and started to play football at his hometown club Cherno More. After his good performances in the youth teams were caught, he was promoted into the first team in 1986. For five seasons, between 1986 and 1991, Iliev made 123 appearances and scored 31 goals for the club. He was transferred to Levski Sofia in the 1991–92 season, winning three times the Bulgarian A PFG and one Bulgarian Cup in five years with the club. In 1995, Iliev moved to Benfica and won the Taça de Portugal in the 1995–96 season. In his career he also played for Slavia Sofia, Turkish Bursaspor, Greek AEK Athens as well as for the Portuguese clubs Marítimo and Salgueiros. He finished his career at his first club Cherno More Varna in 2004.

Ilian Dimov Iliev (Bulgarian: Илиан Димов Илиев ; born 2 July 1968) is a Bulgarian professional football manager and former player. He is the head coach at Bulgarian First League club Cherno More Varna.