Iran is one of the most concentrated areas of Afghan migrants and refugees. Although the history of Afghan migration dates back to 19 century, the first main flow of migration took place after Soviet invasion. Given a relatively long history of Afghans in Iran, studying the impact of migration on their lives is of importance. Using spatial planning (Amayesh) data in 2005 and the data of a sample survey on Afghans in Iran during 2004-2005, this paper aims to examine the changes in social, economic and demographic characteristics of Afghans in Iran. The explanation will be mainly based on adaptation hypothesis. Findings show major improvements for Afghans in Iran in terms of education and health. Differences across generation and duration of residence show more advantages for those with longer duration and second-generation Afghans. In terms of occupation, however, the adaptation was not remarkable. This unbalanced integration can be to high extent attributed to the characteristics of migrants, and migration policy of the host society towards them. The different consequences of such adaptation and integration would have policy implications.