This report deals with the foreign policy of Iran and Turkey towards Iraq. The aim of the report is to determine the factors that sustain the current and future foreign policy towards Iraq. In order to examine the foreign policy towards Iraq, the focus will be on the historical elements shaping the political relations between the countries. To approach this problem, a political and economical perspective is being used in the report. Thera are three main conclusions drawn in relation to the Turkish foreign policy towards Iraq. The first and main conclusion is related to the Kurdish dilemma and the Kurds´ambition to become independent. Turkey is determined to stop this ambition, both in Iraq and in Turkey. Ankara is also firm to fight against the PKK-fighters. The second conclusion is that Turkey is afraid of radicalism in Turkey. Economic incentives and trade are the third conclusion influencing the foreign policy. The US invasion of Iraq during 2003 and removal of Saddam from power has created new conditions for better political and economical relations between Iran and Iraq. The invasion has resulted in increased Iranian influence on the domestic development in Iraq. Iran´s reasonably good relations with a Shiite-friendly government in Iraq coupled with economic and trade incentives, will have an important impact on the future of Iranian foreign policy towards Iraq.