Narrating the past history of Iranians, Ferdowsi'sShahnameh has transferred major elements of Iranian identity throughout the centuries. To identify Iranian vs. non-Iranian identity and the contexts leading to the creation of Shahnameh, the present paper has employed critical discourse analysis (CDA). The findings of a textual analysisof the story of Siavash indicate that the discourse of Iranian identity has been shaped through confrontation with that of Aniranian, and in both discourses, the political dimension of identity has been more important. Ferdowsi regards the political institute as the guardian of freedom and independence of Iran. In fact, taking into consideration the conditions of the time and the conquest of Iran by the Arabs and their dominance, Ferdowsi tried to propose his political ideas in "an ideal king". Enjoying divine charisma, justice and wisdom, the ideal king is the nodal point in the discourse of Iranian identity. In contrast, the king of Aniran has been delegitimized as the nodal point of Aniranian identity, lacking divne charisma, justice and wisdom.