We introduce a highly efficient and accurate iterative method for solving nonlinear boundary value problems encountered in various engineering and physical applications. Our Iterative Finite Difference (IFD) technique is derived by applying quasilinearization in function space, combined with finite difference discretization, leading to an iterative scheme. Each iteration involves solving an ordinary differential equation using the approximate solution from the previous iteration. The method is applied to various nonlinear test problems such as Bratu`s problem in one, two, and three dimensions; Troesch`s problem; Falkner-Skan problem; and Lane-Emden problems. Numerical simulations demonstrate the method`s accuracy and efficiency, particularly for highly nonlinear problems where traditional numerical methods struggle. The proposed method exhibits a quadratic rate of convergence. Furthermore, we explore extending the method to solve another class of nonlinear partial differential equations (time-dependent problems), such as Sine-Gordon and Klein-Gordon problems.