This study examines the relationship between oil development and social change in Iran. The research focused on the years since 1953 examining the economic structure through the five development plans which were the major vehicles of social transformation. Within this framework the importance of oil, industrialization, land reform,, the labor force, education and health are discussed. Demographic and stratification changes are covered such as changingpopulation patterns, migration, minorities, social classes, and the distribution of wealth. Cultural and social values are then treated with emphasis on the Shah and arms, social control and social behavior. The paper concludes: oil revenues were frequently squandered without real socio-economic benefit to the masses. Economic's mismanagement and rigid social control increases pressures in society causing the 1978 revolution.