The problem with which this study is concerned is the development of a plan to reform the structure of the current system of Iranian higher education, both quantitatively and qualitatively. These goals have been set by the Charter of Educational Revolution and coincide with the Development Plans of the nation which have aimed to bring about a fundamental change in society. Educational history of Iran since ancient times is discussed, with special emphasis on higher education, and the religio-cultural influences in shaping the organization of educational institutions and curricula are overviewed. The nation developed one of the world's oldest scholastic centers of higher learning, Gondi-Shapur Academy, whose international faculty contributed significantly to the advancement of knowledge. Iranian culture was exposed to Islam following the Arab invasion; and Islamic doctrine, which has been opposed to secular education, has dominated the educational philosophy of the country. Western education came to Iran through military institutions and religious institutions. Modern schools increased during the last decades of the nineteenth century; however, their progressive development can be traced only from the reign of Reza Shah, beginning in 1925. The first modern university of Iran was established forty years ago. The provincial universities and other institutions of higher learning came into existence in following years. After adopting the Charter of Educational Revolution in 1968, Iran experienced a rapid expansion of its institutions of higher learning. The percentage of total student enrollment in these institutions has never exceeded 0.37 per cent of the population, however, because the institutions could not expand rapidly enough to accommodate the students who applied for admission. Graduate education is also in the primary stages of development, currently comprising 2.4 per cent of the college students of the nation. To cope with these shortcomings, the study has come to the following conclusions: 1. The system of higher education in Iran should develop qualified graduate schools to educate highly advanced professionals and scholars to fill the positions which the nation, until the present time, has had to award to personnel who have received their education abroad.