From the early days of the Abbasid revolt against the Umayyads (661-750) the Iranians participated actively to find a way to achieve political independence. Having an ideal picture of the Iranian pre-Islamic Empires in mind, the Iranians were required to establish their particular political structures in their own territories. Local dynasties of Iran from the Tahirids (821-873) to the Buyids (932-1055) tried different ways to distinguish their political structures from the Abbasid Caliphate. To broaden their territories, these local dynasties were in persistent conflicts with each other; however, their proceedings approached Iran to independence from the Abbasid Caliphate. The presence of Turks in the political structure of the Abbasid Caliphate and the local dynasties in Iran particularly the Samanids (874-1004) provided the conditions for the establishment of the Ghazvanid dynasty (975-1187), the first Sultanate in Iran. The historians know Sultan Mahmud, the founder of the Ghaznavid dynasty, as the first Iranian King of an Islamic dynasty. Drawing on precedent local dynasties to link himself to the ancient Iranian Empires, Mahmud named himself Sultan to identify an independent identity for himself. Supporting the Abbasid Caliphate against the Shiite Buyids and the Ismailis called Bad-din, Sultan Mahmud developed his territories in Iran and India as Ghazi-e Islam. He established a splendid court with developed bureaucracy to rule over vast territories from India to Rayy. Based on primary Persian and Arabic sources, this article addresses the theological and political proceedings of Sultan Mahmud to establish the first Sultanate in Iran. Considering the political structures of the Abbasid Caliphate and other local dynasties like the Samanids, Byuids, and the Saffarids (861-1002), this article addresses what challenges Sultan Mahmud faced to introduce the Qhaznavid dynasty as a distinguished political structure in the medieval time. Keywords: Sultan Mahmud, Abbasid Caliphate, Ghaznavid Dynasty, Independent Political Structure.