In a documentary analysis of the process of nation building in Iran of the age of modernity, shows that the eventful transfer of Monarchy from the Qajar dynasty to that of the Pahlavis in late 1920s, caused sentiments to take over prudence among the ruling elite of the country whereby seeking revenge by some of those related to the House of Qajar against the Pahlavis cast shadow over their sense of patriotism and this is where the problem started. Considering the fact that education under the Qajars was restricted to the House of Qajar, the Pahlavis were left with no option in their task of state and nation building but to rely upon them as the only educated class of the country. Though most of those related to the House of Qajar proved in practice that they preferred patriotism over tribalism, some of them walked over their sense of duty towards Iran and any thought of patriotism in seeking revenge from the man who overthrew their dynasty. Today the fall of the houses of Qajar and Pahlavi does not matter to the new generations of Iranians. But what matters to generations to come is recognition of the fact that the controversy arising from the transfer of monarchy from the Qajars to the Pahlavis at the start of the 20th century, and the failure of the Qajar related lords of tribal vengeance in removing the Pahlavis from Power in the middle of the 20th century which is still showing its unholy presence one way or another in our political culture, still is negatively effecting Iran’s process of a democratically inclined nation building. Unless there is an end to this ruinous legacy, there will not be an end to the culture of demagogy, lies and deceits that has since 1950s engulfed our political culture.