Background and Objectives: Historical contexts are the relative advantage of old cities, which can attract both human and economic capital in urban competitiveness approaches. However, this advantage becomes a competitive one when the place brand can create a unique valuable image in the minds of its stakeholders. Therefore, any planning and designing to promote the brand of the place requires accurate identification of the current situation and perception of the beneficiaries of that place. Consequently, it is very important to examine the mental image of the internal stakeholders of that place, including residents, business owners, and citizens, all of which determine the internal brand of the context. The urban context is only successful in satisfying external stakeholders, including tourists and investors, once it creates value, a positive image, or satisfaction for its internal stakeholders. Therefore, this study was first conducted to investigate the perception of the internal brand of the historical context of Isfahan and to know what factors shape the mentality of internal stakeholders in the perception of the brand of the historical context of Isfahan and also what the current status of its brand image is. Methods: The methodology used is organized and implemented based on the grounded theory of Strauss and Corbin. Considering this theory, recognition of the phenomenon or the presentation of the theory comes from the data collected. Based on their systematic collection and analysis, it is rooted in the conceptual data. The purpose of a grounded theory is to provide an abstract analytical framework for a process, action, or interaction. Based on this fact, in this research, the emotions, feelings, and behavior of the internal stakeholders in the context are investigated using open-ended qualitative interviews. The data gathered is used to analyze and interpret the perception of the context for discovering their concepts and relations and organize them in the form of a necessary theoretical explanatory plan. Therefore, by conducting in-depth interviews with 245 people in five historical neighborhoods of Jubareh Dardasht, Jolfa, Takht-e Foulad, and Naqsh-e Jahan, the internal image of the place brand was investigated and analyzed. Findings: The data gathered helped us extract 72 key concepts and 19 main categories. The results indicate that the brand image of the historical context of Isfahan-from the stakeholders’ internal point of view-is consisted of tangible and intangible cultural heritage attractions, social compatibility versus social conflict, economic activities, and social interaction that is affected by factors such as physical and social issues. These involve the degree of desire to reach the context in various aspects, such as residence, investment, and visiting and spending leisure time. However, in some historic neighborhoods, it leads to economic stagnation, lack of social vitality, and capital withdrawal. The dominant mental image of the audience in Jubareh neighborhood is based on its social identity and the Jewish residence. In Jolfa neighborhood, it is based on the social and economic identity of the Armenian population. The entertainment and leisure activities and shopping in Dardasht neighborhood are considered because of its tangible and intangible cultural identity, including religious occasions and historical monuments. In Naqsh-e Jahan neighborhood, it is based on its cultural and economic identity, including its great square and large handicrafts market. And finally, in Takht-e Foulad neighborhood, in its ritual religious, cultural ceremonies, and identity. Conclusion: In a comparative study of the related literature review with the findings of this grounded theory research, the conceptual model of the internal brand image creation of the historical context of Isfahan indicates two stages of cognitive factors and emotional factors. The cognitive stage includes tangible and intangible cultural heritage attractions, economic activities, social and physical issues, structural capital of urban management, and local lifestyle. The emotional stage also indicates interaction and adaptation versus social conflict, stakeholders’ religious values on the one hand, and the manifestation of religious values in the place. On the other hand, belonging to the context versus not belonging and the existence and symbolic human capital causes motivation or lack of motivation to participate in the context. These two stages create an attitude of the place in the mind of the stakeholders that leads to the process of creation of the brand image in the behavioral stage. Then, based on the interests of the stakeholders, willingness or unwillingness to live, invest, spend leisure time, do shopping, and visit is manifested, and of course, it is associated with the existence or lack of economic and human capital, economic and social vitality in the context.