Throughout the world decision makers and the general public have undoubtedly realized in recent years that cyberspace must be treated as a genuine realm of warfare. Since the the Stuxnet attack - one of the most destructive cyber attacks to date - Iran has been working hard to improve its cyberspace defenses on the one hand, while building up cyberspace intelligence gathering and offensive capabilities on the other. This article examines the current situation regarding various elements of Iran’s cyberspace development process. The rst section analyzes the country’s cyberspace strategy, while the second section describes the organizational and operational response to the formulated strategy. This comprises three components: infrastructures for training and developing technological manpower for work in cyberspace; technological developments that have already been introduced; and the overall processes of cyberspace force construction. Finally, the article focuses on a number of cyberspace incidents attributed to Iran, attempts to gain some insight into the way Iran conducts its cyberspace activities, and examines implications for Israel and other Western nations.