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The objective of this study was to examine the factors influencing fragmentation of landholdings commonly regarded as a major obstacle to agricultural development in Iran. A sample of farmers was selected and household and village-level data from 12 villages of Ramjerd sub district in Fars province were used to test these factors empirically. Required data were collected by questionnaire from 151 farmers who were selected through a stratified random sampling design from 12 villages of Ramjerd sub District of Marvdasht County in South of Iran. The findings indicated that the fragmentation is the result of several processes (including social, culture, economic, physical and operational processes), working either together or independently. The influences of these factors on land fragmentation were calculated by linear regression model. Results indicated that household average annual income, per capita arable land, size of land rented by household, labour force of household, family size, number of crop planted by household and size of land rented out, contributing to land fragmentation.