Abstract: The issue of urban space organization and sustainable development in informal settlements is one of the major challenges of urban management in large cities. According to the latest census in 2016, more than one-third of Kermanshah's population resides in marginal areas, indicating the absence of an integrated model to address the dissatisfaction arising from urban policies. This paper, based on an experimental research method, examines the status of informal settlements in Kermanshah from the perspectives of two groups of the study population: marginalized citizens and experts, who were randomly selected. The most significant informal settlements in this city include the neighborhoods of Dowlatabad, Jafarabad, and Hekmatabad, which are in poor condition both visually and infrastructurally. This study utilizes the Analytic Hierarchy Process (AHP) and surveys from two groups (experts and residents of marginal neighborhoods) to analyze the factors influencing the conditions of these areas. The questionnaires were designed using the Likert scale, and their reliability and validity were confirmed through Cronbach’s alpha and content validity ratio (CVR) tests. Data analysis was performed using t-test, Levene's test, Wilcoxon, and AHP methods. The results show that visual issues, including building decay, poor construction materials, and non-standard roads, are among the most prominent features of informal settlements in Kermanshah. Additionally, economic factors such as low income and lack of proper infrastructure play a significant role in the problems faced by these areas. Based on the findings, recommendations are made to improve the quality of life for residents of these areas, which include visual improvements of neighborhoods, upgrading infrastructure, increasing social security, economic empowerment, and citizen participation in urban decision-making processes. This research emphasizes the importance of considering social and economic characteristics in organizing informal settlements and proposes strategies for the sustainable development of these areas within urban planning frameworks to enhance residents’