The main purpose of the present study was to investigate the conceptual space of commodification of education and its consequences. The research method was grounded theory and the target population consisted of high school students, families, teachers, principals, and officials in Mashhad city. Participants were selected through purposive sampling and data saturation was achieved after conducting interviews with 32 individuals. The reliability and validity of the data were confirmed by experts and participants.The study's findings showed that the commodification of education occurs at three levels: the commodification of learning, the commodification of students, and the commodification of teachers. The underlying conditions for this phenomenon are organizational and familial. The interventionist conditions include social and familial networks, the prevalence of non-governmental schools, and the existence of a parallel educational system. the contextual conditions consist of privatization of education and government policies. the strategic action of the target community in response to the commodification of education takes two forms: resistance and acceptance. Ultimately, the consequences of this phenomenon can be economic, cultural and social, educational, and psychological.