Using the analytic-historical method, this article attempts to explain the cultural policies of the first Shah of the Pahlavi Dynasty toward women. Relying on the theory of evolution and formation of national identity in Iran, the article seeks to answer this question: ‘What is the impact of the cultural policies of the first Shah of the Pahlavi Dynasty on the occurrence of identity crisis among Iranian women? ’ The findings indicate that the cultural policies of the first Shah of the Pahlavi Dynasty toward women were in serious conflict with the identity of Iranian women since the main core of Iranian identity rests upon the three elements of Iran, Islam and Shiism. The findings further reveal that such policies as boosting a feeling of self-inadequacy among Muslim women, promoting the Western lifestyle (non-Iranian lifestyle), propagating public unveiling, and promoting sensuality by changing the marriage and divorce law and due to the relative dominance of Western-based development model structures over the Iranian community, the first Shah of the Pahlavi Dynasty, in the long run, led Iranian women toward confusion and, finally, identity crisis.