The geographical location and its impact on the economy is particularly important in understanding the history of a city. The Mongol invasion of Iran brought about major changes in the decadence and growth of the city. Tabriz city, due to its geographical location and its economic importance in the Ilkhanid era, enjoyed a special importance. The purpose of this study was to investigate the reasons for the importance of the geographical location of Tabriz in its growth and prosperity, with an emphasis on its economic resultant during the Ilkhanid period. The method of this research is to explain and interpret events based on the influence of the geographical location on the economic structure of Tabriz in that era. Tabriz has enjoyed relative urban growth and prosperity for a long time, but after the fall of Baghdad in 656 (AH) it was more favored. After becoming the capital, Tabriz turned to one of the most important cities and commercial centers of Iran during the Ilkhanid era. Above all, Baghdad was quickly downgraded from a caliphate center to a small state-run city.