Following World War II, one of the underground resistance movements against the Allied occupation forces in Iran transformed itself into the Pan-Iranist party that promoted Iran’s national integrity and independence. Led by Mohsen Pezeshkpour, in much of the 1940s and 1950s it resonated intense Aryan nationalism combined with concepts of identity, race and religion during the post-colonial awakening in the Middle East. This article is an analysis of the semantics between the Pan-Iranist Party and the Pan-Arabism of Gemal Abdul Nasser of Egypt. The study is a detailed analysis of three critical years of Iran’s history which led to the widespread use of diverse ideologies. The first is the Pan-Iranist diatribe as a reaction to Gamal Abdul Nasser’s Pan-Arabist claims over the Khuzestan region and the Persian Gulf which he referred to as the Arabian Gulf. Following the Shah’s White Revolution of 1963, Iran had witnessed the riots in Qom after Ayatollah Khomeini’s speech that was critical of the Shah. This prompted the Shah to extend an invitation to the newly declared King of Saudi Arabia, Faisal bin Abdulaziz Al Saud, who had managed to push aside King Saud and with the support of the ulema and the grand mufti, acquire the throne. Faisal was also disenchanted with Nasser’s constant efforts to hijack the leadership of the Arab world by promoting an aggressive policy of Pan-Arabism and an Arab union. The alternative response to Nasser’s Arab Union was Pan-Islamism which sought to deflate and curtail Nasser’s political ambitions. The study is based on primary sources available on the Pan-Iranists, the proceedings of the Majlis (Parliamentary Papers), documents in the Iranian National Archives, and Arabic newspaper. A preliminary study shows that with all the saber-rattling between Pan-Arabism and Pan-Iranism, Nasser’s genuine audience was his popular Arab supporters in Egypt, Syria and Jordan. Nasser’s effort to sustain the delicate balance of the United Arab Republic since its inception on 23 February 1958 required that he generate a non-Arab scape-goat as a perceived threat. For this purpose Pezeshkpour’s Pan-Iranism with its highly volatile and over-toned racial comments fulfilled the requirements. This was the beginning of the war of semantics between Arabs and Ajams (Persians), and claims over Khuzestan and the Persian Gulf which has continued to plague the region ever since.