Business development in Tamerlane Era has played a significant role in the urban development and the booming economy of Iran. The present paper, thus, discusses the factors that have contributed to such a development of domestic and foreign trade as well as its consequences. During his rule, Tamerlane took safety and security measures along the roads, and established Caravansaries and Rebats for caravans’ comfort. In order to develop the cities, he also attracted the foreign trade. Ortaq system, which was common in the Ilkhanids Era, was once more popularized in this era. Tamerlane and his successors took Tamqa from the Merchants and Artisans and got duties at Gateways. In foreign trade, Tamerlane started relations with the nearby as well as western countries. To revive the Silk Road trade in Iran, which had been brought to a standstill since the fall of the Ilkhanids, he blocked the trade route to the north of the Caspian Sea, which ran through Khwarazm towards Tana and Kafa in Gipchagh plain, and instead redirected it to the south of the Caspian Sea. The result of such policies has included the development of urban cities such as Tabriz, Soltanieh, Samarkand, Herat and Hormuz. Some Iranian businessmen transferred the Iranian domestic production to Bursa, and Timurids government gained much more benefits through duties taken from the trade Caravans. Besides, effect of such developments in terms of agriculture and urban trade has also been considerable.