Iranian music industry suffers from many problems. This threatens indigenous culture and identity. The aim of paper is to investigate the main causes of the problems and provide solutions for them. For that end, first interviews with 14 activists in music affairs in order to identify the problems. Then, solutions for each of the problem using innovation system approach were provided. Thereafter Fuzzy Delphi method has been used to choose the most consensus problems and solutions. As the concluding remark, the research shows that the main reason for the problems is disorder in innovation system of music industry, and organizing innovation system in music industry is the best way to address that. In the other words, many of the current problems can be mitigated by creating and strengthening policymaking bodies, financing, creating indigenous music, developing human resources and the production of musical goods and services. However, consensus could not be reached on the importance of supporting entrepreneurship and religious- social research in the creation of music.