This paper studies socio-economic factors affecting begging phenomenon in the city of Mashhad. So, sociological and social policy approaches are used to clarify theoretical and conceptual dimensions of panhandling. Also, qualitative method and related techniques such as in deep and unstructured interviews and observation (of ways of begging) are used to collect the research data and information.  The study is based on the argument that the phenomenon of panhandling is concerned with two groups of factors including indirect (environmental enabling) and direct (individual) ones. The research findings indicate that such factors as the very identity of the city of Mashhad from the point of view of religiosity and immigration as well as features of the very beggars such as having an unfavorable physical state, the low level of education, family unfavorable situation, lack of basic capabilities, poverty and unemployment were determinant factors that intensified each other and led to the emergence of inability state and to the acceptance of begging role. The latter is also enforced and sustained through a socio and psycho humiliating process. On the contrary of the prevailing perspective that blames beggars in moral degradation and lack of laziness, the paper concludes that poverty and insolvency and related variables play higher roles in this process.