On 26 December 2003 at 1:57 GMT, the historical city of Bam, located in the south-eastern region of Kerman province in Iran, was shaken by a relatively strong and destructive earthquake. The earthquake located at 29.0 oN and 58.26oW had a Mb of 6.3 by Geophysics Institute of the University of Tehran and an Ms of 6.5 estimated by the U.S. Geological Survey (USGS). The main shock killed nearly 35000 people, left more than 50000 homeless, and destroyed virtually all buildings in the region. Based on the reconnaissance visit by the authors, most common types of damaged buildings in the earthquake-affected area were non-engineered adobe, un-reinforced masonry houses and steel buildings. Most houses in the epicentral area were of adobe construction, made of sun dried clay brick walls, and heavy domestic roofs or vaults with clay or mud mortar. This earthquake clearly demonstrated that combination of relatively rigid load-bearing external brick walls and flexible internal steel columns, existing similarly in most other regions of the country, is quite hazardous. Also use of steel beams and columns in buildings without observing proper seismic proisions showed no improvement over non-engineered buildings. Unlike Some researchers who claimed that the performance of reinforced concrete structures in the area was satisfactory, probably due to the fact that the number of the reinforced concrete structures in the stricken area was for less than the other type of structures, authors believe that it was not so better than others. In this paper after summarizing the seismological and engineering field investigations of the devastating earthquake, the performance of the existing structures during the earthquake is discussed.