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This article examines the welfare programs and policies in the modern Iran in relation to interaction between government and civil society fromemergence and development of the modern state in Iran (1925) to end of Iranian reformist government by administration of President Mohammad Khatami (2005). Modern Iran could be dividedinto two periods; before and after the1979 revolution. The article's argument is thatthe main target groups of welfare benefits in the period before the 1979 revolution were governmental bureaucrats and army forces but in the after 1979 revolution period the targeted groups changed and newly formed and redefined groups were became the main target groups of welfare programs. Also, the oil revenue has provided financial resource for government andit has been independent from society in procuring finance for its programs.As a result did not form appropriate interaction between government and society and welfare programs have been production of political structure. Subsequently, Welfare benefits have served to favor government ideology and political purposes; form patron-client relationships between government and society. This form of relation acted as one of the main obstacles for the full accomplishment of civil society in Iran.