The Iranian revolution of 1978-83 was a disaster for Iranian leftists, who, having worked for the overthrow of the Shah, soon found themselves being persecuted by the hard-line followers of the Ayatollah Khomeini. This paper looks at the response of Western leftists to the unfolding of the revolution, considering, first, to what extent Marxist and class-based analyses helped explain the revolution and, second, why so many Western leftist groups and individuals defended the Khomeini faction even as it moved against secular leftists and liberals. It concludes that an uncritical identification with Khomeini's declared 'anti-imperialism' distorted the views of those who would ordinarily have opposed his regime on class grounds, and that such a misreading was aided by an inadequate distinction between bourgeois democracy and dictatorship.