The failure of many poverty and inequality reduction programs in developing countries is due to the income-based measurement approach. The main cause of poverty is not only a consequence of lack of income, but is also the result of the deprivation of capabilities to get out of poverty. Since 2010, the United Nations Development Programme (UNDP) offers a new multidimensional poverty index based on Alkire and Foster's method. The aim of this study is to measure the Multidimensional Poverty Index and its determinants in Iran rural and urban areas by using the raw data of Population and Housing Census 2006. The results show that the incidence and intensity of poverty in Iran is respectively 12.3% and 30.6%. Poverty is more prevalent in rural areas compared to urban areas with about 21.4% of the rural households considered poor compared to 5.86% of urban households. The poorest province is Sistan and Baluchestan and there are more poorer households in southeastern provinces. According to the logistic regression results, the main determinants of poverty are gender, education, marital status, occupation and age of household head; source of drinking water; type of toilet sewage disposal; home ownership; dependency ratio; number of children and educated household members; geographic location and nationality. Keywords: multidimensional poverty index, Alkire and Foster method, rural and urban households, logistic regression.