Iguodala, who has missed Games 4 and 5, has a left lateral leg contusion. The Warriors host Game 6 on Saturday and are trailing 3-2 in the best-of-seven series.
"He's dying to play, but he's not healthy enough," coach Steve Kerr said Thursday. "We'll just continue to take it day-to-day.''
Iguodala suffered the injury when he banged knees with Rockets guard James Harden in the fourth quarter of Game 3 on Sunday. He participated in the team's shootaround on Thursday.
The Warriors opened as a 10.5-point favorite for Game 6 at several sportsbooks. After Paul was ruled out, the Warriors were listed as high as 12-point favorites over the Rockets.
ESPN's David Purdum contributed to this report.