Malayer, city in western Iran, located in the Zagros Mountains in Hamadan province. Malayer is a trade center for the many agricultural villages of southeastern Hamadan and a small-scale manufacturing center noted for its production of carpets. It is on the main highways between the city of Hamadan and Arak and between the city of Hamedan and Borujerd. Malayer has existed since at least the Sassanid Empire (AD 224-651). In 637 Arab forces united under the young religion of Islam inflicted a fatal defeat on the Persian army at Nahavand, which lies 40 km (25 mi) southeast of Malayer. Malayer remained a small town until the mid-20th century, when industrial development led to a sixfold population increase between 1956 and 1991. Population (1994) 149,774.