ABSTRACT This article examines the role of both ideology and identity in Iran’s policy in Iraq. In each society, there are competing self-images such as ethnic, ideological, and religious perceptions that impact foreign policy. Which begs the question whether identity or ideology has more influence? I argue that shared religious identity in two different countries is more important than ideology in mobilizing segments within multi-confessional societies. In addition, these forces become operational after the collapse of the state. The existence of a formidable central state thwarts the mobilization of counter identity and ideology, but when it weakens the door opens for sub-identities. The Islamist ideology of the Iranian revolution, for example, galvanized Muslims from different sectarian backgrounds. However, these ideological precepts gave away to shared identity. The Iraqi Shia today do not believe in the precepts of velayat-e faqih as much as shared Shia identity with Iran.