This paper discusses female labor force participation and employment in Iran. It shows that despite women's educational and social achievements over the last thirty years, their position in the labor force has not improved. Their rate of participation remains low, their unemployment rate has been on the rise in recent years, and their occupational choices are limited. Further, educated women have not faired well in the labor market. The war and revolutionary atmosphere in the 1980s resulted in a severe decline of women's participation and employment figures. Public policy was partly responsible for the decline but there were also cultural issues that tended to exacerbate the situation. The Paper examines the gender characteristics of recent developments in Iran's labor market. It analyses data from the most recent years, and reviews institutional and structural issues pertinent to women and work. The paper also provides a number of recommendations for future initiatives.