Bakhtiar returned to Iran in 1946 and joined the social democratic Iran Party in 1949 and led its youth organization. In 1951 he was appointed director of the labor department in the Province of Isfahan by the ministry of labor. He later held the same position in Khuzestan, center of the oil industry. In 1951 Mohammad Mosaddeq had come to power in Iran. Under his premiership Bakhtiar was appointed deputy minister of labor in 1953. After the Shah was reinstated by a British-American sponsored coup d'état, Bakhtiar remained a critic of his rule.