Traditional neighborhoods, as part of the cultural and historical heritage of cities, face challenges in maintaining identity, livability quality, and compatibility with modern needs. The Charndab neighborhood of Tabriz is no exception and requires sustainable development considering various dimensions of sustainability. This study aims to examine the impact of sustainability dimensions (physical, environmental, social, and economic) on the development of Charndab neighborhood with an environmental sustainability approach. The research method is descriptive-analytical, utilizing Structural Equation Modeling (SEM) and SmartPLS software. The statistical population included experts and specialists in the fields of architecture, urban planning, environmental studies, and urban development, with data collected through a standardized 30-item Likert-scale questionnaire. The findings of the research indicate that physical sustainability has the greatest impact on the development of the neighborhood, with a path coefficient of 0.45, emphasizing the revitalization of deteriorated spaces and climatic design. Environmental sustainability, with a path coefficient of 0.38, emphasizes pollution reduction and natural resource management. Social sustainability, with a path coefficient of 0.32, strengthens local cohesion and community participation. Economic sustainability, with a path coefficient of 0.29, supports local businesses and attracts investment. The results show that the sustainable development of Charndab neighborhood requires simultaneous attention to all dimensions of sustainability. This research provides a practical model for the regeneration of traditional neighborhoods while preserving cultural values and enhancing the quality of life.