Adopting the best method of implementing monetary policy has always attracted the attention of economists and monetary authorities. The newest monetary policy framework, called inflation targeting framework, was first adopted by NewZealand in 1989, after which an increasing number of countries, especially developing countries, have anchored their monetary policy in numerical or ranging inflation rate. Theoretically speaking, the adoption of this framework, institutionally and technically, requires some conditions (as the prerequisites). The goal of this research is to study the preparedness of Iranian economy to adopt this policymaking framework from institutional point of view. The prerequisites studied in this article include the credibility of the central bank, central bank independence, fiscal dominance, financial development and commitment to a sole target.The paper find that there are serious but soluble deficiencies in Iranian economy regarding institutional conditions (preconditions) which implies that presently Iran is not ready to adopt the inflation targeting framework. But the important and emphasized point in this research is that adopting this framework can, per se, provide a basis for putting serious effort in institutional and technical reforms to implement any kind of monetary policy regime such as inflation targeting.