Japan is the second economic power of the world, generating knowledge and technology at the highest world - class level. Hence, it may ranks a higer stand in Iran's foreign policy.

On the other hand, Iran being one of the most important and influential countries of the Middle East. possess high stability and political independence, a bundant material and intellectual resources; and can be one of the strategic cooperator of Japan in the region.

Despite of these, the two countries relations do not match the existing capabilities.

This thesis discusses the roots and main factors of inefficiency in Iran - 0 - Japan relations, critically reviewing circumstances in 1980 & 1990s - as well. Also, it looks separately into Japan's foreign policy and its future prospects, with special consideration of Japan an US relations.

Finally, we will present new snggestions. among which resoulution of structural problems of the countries economy and administration, realism and transformation in foreign policy approaches, and peace - making with west, specially with US, are included.

Iran, Japan, Relation, Politics, Economy. .