A review of relic narrations of different historical periods, further that prevailing theoretical approaches in the issue of identity, can be beneficent in determination of Iranian identity in historical period. Recognition of the Iranian identity position in the thought of Ibn Balkhi during Seljuq era and its influence of ideal identity in his attitude in narration of events and writing of Farsnameh, is the subject of this research. The main question of this article is how Ibn Balkhi's approach towards Iranian identity can be described and which elements had influenced the reflection of Iranian identity in Farsnameh? A review of four considerable constitutional elements of Iranian identity in Farsnameh reveals that Ibn Balkhi is a Muslim with an Iranian culture and assigns a historical identity for Iranians. The enduring extensive permeation of renaissance era of Iranian – Islamic culture in society, attitude towards social spirit, attention to narrations inspired by common culture and noticing the issue of Fars, old and glorious center of ancient rules, have influenced Ibn Balkhi’s attention to subjective and objective elements of Iranian identity.