This paper investigates the potential for ethnic conflict in Sistan and Balouchistan province with an emphasis on social inequality using document analysis method. Combination of three basic theories of ethnic conflict, namely "security theory", "opportunity theory" and the theory of "oppression" were used simultaneously. The findings show that Sistan and Baluchistan province suffers from more inequality in comparison to other provinces and within the province itself; there is a huge gap between Baluches and Sistanis in terms of access to facilities. Existing inequalities reinforce religious strife, and sometimes anti-Shiite feelings in the region. In other words, the radical attitude of the Shi'a central government to the removal of facilities (political, welfare, social ...) has led to the reproduction of a radical view of the Balouch people under the influence of Talibanism. Therefore, the simultaneous effect of ethnic relations (inequalities) with the state (exacerbating inequality) and the international environment has provided the ground for conflict in this region.