The growth of cities and increasing reliance on private vehicles have led to numerous challenges, including traffic congestion, air pollution, and a decline in the quality of public spaces. The development of pedestrian streets is considered an effective strategy for promoting walking as a sustainable mode of transportation. This study aims to assess the feasibility of constructing a pedestrian pathway on Derin Street in Chamchamal, Iraq, addressing the question of how pedestrian-oriented urban development can be enhanced in the city center. This research employs a mixed-methods approach (quantitative and qualitative). In the qualitative phase, 16 urban planning and design experts were interviewed, and qualitative data were analyzed using MAXQDA software. In the quantitative phase, 426 citizens participated in a survey based on Cochran’s formula, with a questionnaire comprising 51 items across seven key dimensions. The quantitative data were analyzed using a one-sample t-test in SPSS, and results were presented through charts and tables. Findings indicate that Derin Street is the most suitable location for pedestrianization due to its central position, accessibility to key services, and potential for reducing traffic congestion. The proposed design prioritizes accessibility, safety, environmental sustainability, and cultural identity, striving to create a well-integrated urban space through comprehensive and participatory design principles. Beyond establishing localized design criteria for pedestrian streets, this study emphasizes the importance of citizen participation in decision-making and offers practical recommendations for project implementation. As the first study of its kind in Iraq, it bridges the gap between academic research and urban policy-making, providing insights into assessing the economic, social, and environmental impacts of pedestrianization. This research highlights the significance of pedestrian-oriented urban design in promoting sustainable urban development in Iraq. It demonstrates how pedestrian streets can serve as transformative elements in modern urban planning, improving quality of life, enhancing mobility, and reducing environmental impacts.