State is a human phenomenon and a result of his political insight. This concept is including independent political-geographical determining that they are the most important division of the present world. At first it is created in Iran and in Achaemenian period. State continued in Arsacian's period and in Sassanid’s period with defines the concept of Iranshahr, state phenomenon and national identity of Iranian people is stabilized. With arrival of Islam, territory of Iran became part of Darol-islam and Iranian people became part of Muslim nations. Islam did not pay attention to territorial concepts and political boundaries, thus order of state in Iran was ruined. Ferdowsi was observing invasion, insecurity and ups and downs of state in this epoch. Therefore he created Shahnameh with studying the Iranian ancient origins and rules of managing of the state at Sassanid’s period. In this research, by studying Ferdowsi's Shahnameh we recognize word and concept of the state, discussing of its application, equivalents, events of the state and concept of boundary. Then we will show that Shahnameh is evidence of acquaintance of Iranian with concept of the state and boundary in ancient epoch and before Westphalia.