Explaining the relationship between character development and development is one of the fundamental issues in development studies. Although in many contemporary approaches, character development has been analyzed under the concept of human development, this explanation has paid less attention to the cultural contexts of character formation and their role in the development process. The main issue of this research is how the relationship between Iranian character development and development can be explained and whether character development can be considered simply as one of the consequences of human development or should it be analyzed within the framework of cultural development. The present research, using a descriptive-analytical method and using library resources, has reviewed this relationship while reviewing the theoretical literature on development, cultural development, human development, and studies related to Iranian character and temperament. The research findings show that character is a historical and cultural phenomenon that is formed in the context of the value system, patterns of socialization, historical memory, and social institutions; therefore, analyzing character development makes more sense in the field of cultural development than in the realm of human development. Accordingly, cultural development, by transforming values, norms, and patterns of social action, provides the basis for the formation of responsible, law-abiding, participatory, and critically rational personalities, and this character transformation, as a mediating mechanism, enables the realization of human, social, political, and economic development. As a result, the article argues that there is an interactive and reproducible relationship between the evolution of the Iranian character and development; in such a way that cultural development provides the basis for character transformation, and the transformed character also helps to continue and deepen the development process.