Explaining characteristics of vestiges of a civilization or society requires considering criteria derived from the ideology and culture of that civilization or society. This consideration, although one of the most essential issues, is usually neglected. These results in evaluating plans and designs with foreign criteria, which is a wrong approach. Consequently, the resulting designs and plans become strange and relevant to foreign models. This article is concentrated on issues related to Iranian urban squares and their transformation during the last decades. The main point is that religious and national rituals and ceremonies of every society require their own specific space. This is whilst today, Western models and criteria are the main sources in both evaluating traditional spaces and designing new urban spaces. Consequently, considering the fundamental differences between religious and national ceremonies of Western societies with the Iranians', it is not suitable to evaluate and design Iranian urban spaces with the Western criteria. Instead, the main criteria should be derived from Iranian culture. To clarify these issues, discussions are categorized under the following headings: the concept of square and its transformation in Iranian culture, transformation of urban square functions, characteristics of squares in the contemporary era, the main elements of urban squares, natural elements in squares, the main factors affecting transformation of urban squares, social functions of urban squares, and conclusion.