The processes used in bead drilling, shaping and polishing were studied using 49 beads in various stages of preparation and 22 liths dating to 2800-2200 B.C. from Shahr-i-Sokhta, plus 15 beads and five liths of similar date from Tepe Hissar. Models of these artifacts were made and studied in the scanning electron microscope. The beads were classified according to hardness, viz: soft (Mohs 1-3), medium (Mohs 4-6), and hard (Mohs 7-10). In all cases the first step was probably the detachment of small pieces of material and selection, followed by drilling the hole at an early stage. There is evidence, especially strong for the soft case, that soft and medium materials were drilled using flint microliths as drill bits. Hard stones must have been drilled using an abrasive. After drilling, the beads were shaped, probably by rubbing on grooved pieces of sandstone, and polished by some unknown method. -- AATA