Contemporary politics in Iran and Turkey have striking resemblance, despite the great differences in the ideological orientation of their regimes. In Iran, since the landslide victory of Khatami in presidential elections of 1997, popular desire for broader individual freedoms and economic prosperity put immense amount of pressure on the ruling mullahs of the Iranian Islamic Republic, which is unable to provide solutions to these mundane demands. In secular Turkish Republic, November 2002 elections resulted in the triumph of a party that can be best described as Muslim-democrat. Founded by politicians who broke from the ranks of Islamism in 2001, the party succeeded in attracting mass support for its liberal, democratic and moderate political stance. How can we explain these parallel trends of democratization in two countries with so many different social, economic and political characteristics? In both countries, authoritarian versions of Islamism are in decline after periods of mass enthusiasm (1979 Revolution in Iran and the electoral victory of the Islamism party in 1995 in Turkey) and moderate forms of Islamic politics that are not at odds with liberal-democracy are rising. In this sense, the experiences of Iran and Turkey stand in sharp contrast to Muslim Arab countries where authoritarian leaders and liberals fear that free elections would bring Islamists to power who have very dubious democratic credentials. In both countries, elections function as an institution reflecting mass dislike with the authoritarian version of Islamism and desire for broader individual freedoms and economic prosperity. I argue that the emergence of a new middle class that combines Islamic piety with liberal attitudes and the dynamics of electoral competition, however limited, cause the eclipse of authoritarian Islamism and the dawn of democratic Islamic politics. This specific paper primarily focuses on the formation of liberal-democratic values among pious urban middle classes in both countries. The paper draws on original research in both countries to provide compelling empirical evidence for the emergence of politically active pious but liberal new middle classes. In Turkey, I collected socioeconomic, demographic and electoral data at precinct level throughout 2003. Correspondingly, my ethnographic work on the Muslim democrat party (in Summer-Fall 2002) currently ruling the country reveals the political characteristics of this new middle class that form the backbone of the party. In Iran I conducted a survey on the public political values and behaviors with a sample of 400 respondents, in collaboration with the Social Science Faculty of the University of Tehran. The survey is intended to be representative of the city of Tehran and was compiled in August 2003. Unlike the cross-national surveys such as World Values Survey or Gallup Islamic Poll, this survey has country and culture specific questions supported by few open-ended questions that delineate a comprehensive and reliable picture of the relation between democratic values, levels of piety and social status. [ABSTRACT FROM AUTHOR]