This research examines the reality of federalism in the post-2005 Iraqi Constitution, based on the transformation witnessed by the Iraqi political system with the adoption of a federal state as a means of managing ethnic and sectarian diversity and ensuring the participation of all components in governance. The research focused on analyzing the reasons for adopting federalism and the constitutional foundations for its implementation, while identifying the most significant problems arising from its implementation, such as the ease with which regions were established, the ambiguity of the distribution of powers and wealth, and the lack of effective constitutional mechanisms. The research also discussed the impact of federalism on the reality of minorities, by presenting parliamentary quota systems and determining the effectiveness of political participation. It also highlighted the repercussions of the federal system on national unity in light of increasing divisions and multiple loyalties. The research concluded that federalism provided a theoretical opportunity to promote pluralism and justice, but in practice, it still provokes widespread controversy over fair representation and the protection of national unity in Iraq.