The spatial distribution of cities, as well as their management in Iran, has not taken place within the framework of a national program. Hence, the problems caused by the rapid extend of urbanization have complex dimensions. The present study using analysis of census data seeks to show the status and changes of urbanization in Iran. The results show that the urban population of the country has reached to 74 percent, and the number of cities in the country has become more than 6 times. The findings also indicated that more than 50% of the country’s urban dwellers reside in relatively small towns of less than 10,000 inhabitants. Close to one fourth of the population of the country are living in large cities. Policies should focus on strengthening urban planning to achieve sustainable urban development with the goal of providing prosperity for all people in urban areas.