Dress code:

Before visiting Iran make sure you have got appropriate clothing, which comply with the prevailing cultural norms of Iran. Hejab , the "traditional" Iranian dress code for women requires them to cover their body modestly.

a simple pair of Socks and a headscarf with a pair of pants and a lose Shirt is what you need to have on before coming to Iran, after arrival you can simply buy your travel cloths in any shopping center and mal.

Beginning to understand the dress code...
Nowadays  Most of Iranian cloths are stylish and colorful. people like the changes and society has accommodated new styles.  
Passing along clothing tip from a western turist...
If other Journeywoman plan to travel to Iran , I recommend you make do with loose-fitting , modest clothing and a scarf until you get there. Then , you can observe the local women , find a market , and have the fun of purchasing an appropriate coat for around twenty American dollars.  Like Iranian women , you can wear whatever you want underneath , including jeans or black nylons. You should not reveal bare legs or ankles , and if you wear pants , remember to wear socks.
Finally , always keep your hair covered. Your scarf can be folded into a triangle and then knotted under your chin. It is not necessary to master complicated knots or folds , as the under-the-chin method is very simple and , at the moment , very fashionable in Iran. (However , I must confess that by the end of ten days in the country , the novelty of wearing a head covering had definitely worn off. The women in our group ripped the scarves off the very second we crossed the Turkish border).

Clothing postscripts...

P.S. Many current guidebooks and travel agencies still instruct women travelers to wear the chador. Be assured that it is unnecessary , except in mosques , where you can usually borrow or rent one.

 

P.P.S. Be aware that in the countryside , the women dress more conservatively than their cosmopolitan counterparts.

P.P.S. In hot weather , you can kick up your heels and cheat by not wearing a shirt under your long coat. No one will ever know!

Now finally what to wear !!

Most Iranian women wear a Manteau (a long or short coat as above picture) and headscarf; some still use the chador.
Foreign women visitors mostly wear a Manteau or loose knee-length jacket and headscarf. Headscarves can be colorful and black is recommended during days of mourning. It is easy and cheap to buy a Manteau (between  8-20$ ) when you get to Tehran. For first arrival a woman should wear a loose-fitting coat to knee-level.
For men shorts are unacceptable.
Both sexes should dress more conservatively if visiting mosques and religious buildings.

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