The 1906 Revolution is also commonly called the Persian Constitutional Revolution. As this name suggests, this event resulted in the creation of a constitution.

Throughout the late nineteenth century, Great Britain and Russia had been expanding their influence in Persia (Iran). Widespread protests began in 1905 in response to burdensome tariffs meant to repay a loan from Russia. This was resisted by many merchants. When two Tehranian merchants were flogged for price-gouging, the city's merchants revolted and shut down the bazaar. They were joined by a group of Shia clerics, who began the Tobacco Protest against a fifteen-year-old concession to British tobacco merchants.

The government's heavy-handed response to this resulted in more widespread anti-government demonstrations. The shah decided to concede to the protesters and dismissed the prime minister in January 1906. Power was transferred to the House of Justice.

However, this was not the end of the matter. More fighting in protest of the monarchy's many capitulations to foreign influence occurred throughout the country as the year went on. Protesters demanded the creation of a constitution and a parliament to limit the power of the shah. In August, Mozaffar ad-Din Shah agreed and announced that a constitution would be created. Elections were held that autumn, and the National Consultative Assembly held its first meeting in October.