Income inequality refers to the uneven or disproportionate distribution of income among different individuals or segments of a population within a given geographical area. This concept is considered not only a fundamental measure of economic injustice or unequal opportunities but also an important indicator of a society's overall prosperity and well-being. The aim of this article is to investigate the effects of country risk and financial development on income inequality in Iran during the period 1984-2023. To this end, after conducting unit root tests, the relevant model was estimated using the Nonlinear Autoregressive Distributed Lag (NARDL) method. The estimation results indicated that, in the long run, both positive and negative changes in country risk have a positive and significant effect on income inequality; specifically, an increase in country risk leads to higher income inequality, while a decrease in country risk results in reduced income inequality. Furthermore, the effects of both positive and negative changes in financial development on income inequality are negative and significant; meaning that improved financial development leads to lower income inequality, whereas worsened financial development increases income inequality.The results also revealed that inflation rate and trade openness have a positive and significant impact on income inequality, while per capita GDP and government expenditures have a negative and significant impact on income inequality. The results also revealed that inflation rate and trade openness have a positive and significant impact on income inequality, while per capita GDP and government expenditures have a negative and significant impact on income inequality.