At stumps on the third and penultimate day, Mumbai trailed Gujarat by 109 runs with four wickets remaining in the first innings.
Gujarat were all out for 437 in their first essay after Priyank Kirit Panchal slammed 232.
Resuming on 58/3 with Iyer batting on 27, Mumbai had to rely on the 22-year-old right-handed batsman, who played through the day, to take his team to safety at KSCA Rajnagar Stadium.
Another overnight batsman, Dhawal Kulkarni, contributed 61 while adding 187 runs for the fourth wicket with Iyer, who decorated his 310-ball innings with 18 boundaries and two sixes.
Seamer Jasprit Bumrah was the most successful bowler for Gujarat, returning figures of 4/49.
Mumbai were trailing by 379 runs when the proceedings started on the third morning.
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