The present study aims to identify the promoting and inhibiting factors in the implementation of the educational voucher scheme as a solution to improve education and address its challenges in Iraq. This study is classified as an applied-developmental research in terms of its objective and as a mixed-methods (qualitative-quantitative) study in terms of its approach to variables. The statistical population in the qualitative section included 155 faculty members from Iraqi universities and 19 directors from the general education departments of Iraqi provinces. In the quantitative section, 1,900 school principals (elementary and secondary) from various regions of Baghdad participated in the study. The qualitative sampling was conducted using a purposive and criterion-based approach until theoretical saturation was reached (10 participants), while 55 faculty members were selected for the quantitative section based on the same criteria. Qualitative data were collected through semi-structured interviews and analyzed using thematic analysis. To validate the model, content validity indices (CVR and CVI) were employed. In the quantitative section, data analysis was conducted using structural equation modeling (SEM) with the PLS software. The findings identified 26 inhibiting factors for the implementation of the educational voucher scheme in Iraq, categorized into seven major challenges: structural challenges, economic challenges, legal challenges, cultural and social challenges, challenges related to the private sector, design and implementation challenges, and infrastructural challenges. Additionally, the findings revealed 12 promoting factors categorized into internal and external factors related to the education system.