Following 1979 Islamic Revolution, Iran national medicine policy has changed to a compulsory Generic based medicine policy. Self-sufficiency in national pharmaceutical market and providing cheap medicines for public were the main goals of this policy. However, despite implementation of "National Generic Medicine Policy" for past 40 years the aspects of this policy never explained clearly by the policy makers. In past three decades, this policy and consequently Iran National Policy has undergone drastic changes. Iran Ministry of Health allowed production and/or importation of brand and brand-generic medicine into market, along with generic medicines. Recently Pharmaceutical department of Iran National Medicine Academia has proposed a definition for National Generic Medicine Policy and send it to national authorities for its approval. In this paper some chronological aspects of National Generic Medicine Policy and its success and pitfalls have been explained.