Institution as an interdisciplinary concept which is used in a vast range of social sciences has a great importance with its impact on social conflict and power distribution in economics literature nowadays. That the human behaviors are designed by institutions is becoming a well-accepted idea day by day, therefore it is the same to accept the functions of institutions in economics and social process, its power on determining the losers and winners of society through public policy. Several theories are constructed for understanding the relations between institutions and development level. Daron Acemoglu is one of the economists who have important contributions to the institutional theory. Aim of this study is to draw a frame of Acemoglu’s contributions to political economy of development and institutional economics’ theory.