In terms of commercial situations, Khorasan was deemed to be the connection path of west and east for many years. This region was connected to other regions such as India, China, Eastern Europe, and Tibet through commercial paths. In addition, existence of the thriving markets in various cities such as Balkh, Marv, and Neishbour has flourished its commercial situation. The paper intends to study the economic situation of Khorasan and its relations with the political acts of the region from the first century to rise of the first local government. It could be concluded that trade in this region had brought about important political and historical developments among which we can refer to formation of epic stories, entrance of Sasanid Yazdgerd to this region, presence of numerous Arab tribes, the fall of Umayyads and the rise of Abbasids as well as formation of the first local governments after the fall of Iranians by Muslims while its economic capacity had a significant impact in this regard.