The objective of this research is to evaluate the impact of institutional quality and economic growth on poverty in Iran. Poverty and inequality are among the social phenomena, considered by decision-making centers and academic communities. Thus, its investigation and the methods of reducing these phenomena are considered among the most important tasks of economic policy makers. This research uses Generalized Method of Moments (GMM) during the period of 1984-2015 to evaluate the impact of economic growth and institutional quality on poverty. The results indicate that economic growth in Iran has led to increased poverty and reduced institutional quality index of poverty. The current research recommends that government to use pro-poor growth policy to reduce poverty.