Universities and industries are of the most important and influential institutions in social development, and economic and technological growth of societies. Therefore, the relationship development between them, due to it’s positive effects and outcomes in technological, economic and social changes, had been always under consideration by their managers, policy and decision makers, and plenty of efforts had been done in order to develop effective linkage between university and industry. In our country, great efforts had been done theoretically and practically to shape dynamic and effective collaboration in this respect. But until now, an appropriate and effective scientific and technological collaboration have not been formed, because the solutions and mechanisms designed to remove the obstacles and challenges have been ineffective. So, given the undeniable importance of the university and industry collaboration and in order to raise the level of our understanding and recognition of their relationships, it is tried to review the historical trends, main streams, goals and motivations, obstacles and challenges, mechanisms and factors effective on their collaboration. Finally, the relationship between these two institutions in Iran is investigated and some challenges, mechanisms and suggestions have been mentioned.