Despite the fact that under paragraph (a) of the article 55 of Fourth Development Plan and the article 21 of Fifth Development Plan of the Constitution, the government is required to establish a skill training policy-making institution, efforts has so far been fruitless and the problems due to lack of such national institution still remain to be seen. This paper aims to study the current Condition of policy making in nonformal skills training system. It is looking to identify challenges and suggestions to improve the system. It follows an applied objective and the method for data collection is descriptive survey. Data are collected through library research; thus, questionnaires, interviews and documents were used. Data analysis was performed using T-test. The results suggest that there is the problem of multiplicity and lack of coordination among the policy-making agencies in developing policies for the nonformal skills training. Currently in views of experts, the most effective policy-making institution in the nonformal skills training is the Iranian Technical and Vocational Training Organization. Finally, based on the results some recommendations were suggested.