Scholars have devoted substantial attention to underpin the relationship between religion and politics in formation of Iranian identity. They have identified its various components and acknowledged its multidimensional construct. Concurrent with other nations in the Middle East, Iranians too had their unique practice of the age of nationalism in the modern time. Yet, the very idea of Iran, its juxtaposition with a form of Islam known as Shi’ism, and the root of this bilateral relationship requires a further revaluation. To this end, as this paper argues, Iranian identity, which despite its plurality has preserved its unity for more than a millennium now, is not only indebted to but also has a unique role in shaping Shi’i Islam. Problematising the formation of Iranian national identity over the longue durée, and the role of Shi’i Islam in its construct, this paper tries to address what does it mean to be an Iranian in the modern era, and whether this is aligned with the regional policies implemented by the post-revolutionary state in the Middle East, by critically engaging with the thoughts of Iranian intellectuals, their writings, and postures in prior and after the 1979 Revolution.