After USA, Britain, and the Soviet Union invasion in September 1941 and the fall of the first Pahlavi, Iran was occupied by the Allied Powers. Their imposed presence in the country had various economic, social and political consequences. Apart from public psychological and mental discontent, the invasion had its operational impact on objective issues of the society. Authoritative dominance of foreign governments on rail and road transports as an instance of such objective effects has been studied and evaluated. Through utilization of descriptive and analytical method and archival documents, the current paper tries to answer the following question, "What are the consequences of the tripartite pact on rail and road transports of Iran?" According to our findings, in order to use Iranian transport, the Allied Powers adopted an agreement with Iran, which led to their direct interference in the transport system of Iran. Their authority caused reduction in income and financial losses for Iranian government, corruption in the administrative system of road transport, depreciation of locomotives in railways and official buildings, violating the right of road ministry staffs and disruption in resolution of problems. Keywords: Iran, Railway, World War II, The Allied Powers, Reza Shah, Mohammad Reza Shah.