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The present study seeks to analyze the environmental and social consequences of the entry of petrochemical industry into local communities of around the Mahabad Petrochemicals Project. The used method is qualitative and the technique of information analysis is narrative thematic analysis. Data were collected using narrative interviews and the theoretical sampling method used to answer the research objectives, so 21 interviews with people who had lived experience with the project, executed. Interviews have been analyzed in two stages: Open (Primary and Focused) and Axial coding. The main themes from interviews in the social dimension are 34 original concepts under 9 main categories (decrease in local community cohesion, social divergence, decrease in social security, top-down development, lack of transparency and civil rights violations, decrease in mental vivacity of indigenous people, alienation with project, stimulating dissatisfaction of the people and the material benefit of some people). In the environmental dimension, 21 primary concepts under the 7 main categories (air pollution, pollution of land and products, reduced water resources, environmental breaking the law by petrochemical project, optical pollution, respiratory troubles and concerned about the future of the environment