Since the early days of the Islamic era, Translation from Arabic into Persian and vice versa has been a common skill and has provided common grounds in various literary fields between the two historical nations. However, translation movement from European languages into Arabic, beginning in the revolution era in the Arab world and prior to the Constitution era in Iran posed a profound impact on almost all aspects of the two societies. This paper exclusively presents the impacts and achievements of translation affecting the growth and development in literature and its related areas including modernization, new trends in education, prose & poetry, novels and new literary schools. Finally, towards the end of the paper, some other functions of translation and its influences on literary forms and languages and, hence, the standards of aesthetics and literary essence as well as the addressee's tastes will be discussed.