Iran presents unique circumstances compared to other countries regarding the sociopolitical context for sexual and gender minority groups. While homosexuality is criminalized according to the Islamic Penal Code, transgenderism is legally acknowledged and even financially supported by the governmental organizations. In addition, a strict gender binary lies at the heart of the legal atmosphere of the Islamic Republic. This situation has brought about questions regarding the social and psychological status of Iranian transgender and intersex individuals. Transgenderism and Disorders/Differences of Sex Development (also called somatic intersexuality) in Islamic Republic of Iran provides an opportunity to investigate how sociopolitical context might influence psychosexual outcomes (e.g., gender identity, sexual orientation, gender role behaviors).