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Identification and priority of the effective criteria in decision making of selecting most suitable location for establishing solar wood drying unitsin Iran was objective of this study. For this purpose, after preliminary investigation and interviews, 42 effective criteria and sub-criteria were identified and then divided into five major groups. The hierarchy of these criteria was designed and then priority rates of these criteria were determined using Analytical Hierarchy Process (AHP). The results showed that among effective criteria, the five criteria, namely, average temperature, granted facilities, market capacity, labor force availability and price of raw material, have the highest priorities, respectively.