Since 2006, Afghanistan is dealing with one of the most dramatic trend of urban movement in its history, cities and towns are expanding in size and number. Kabul is the capital of Afghanistan and as well as the fast-growing city in the Asia. The influx of the returnees from neighbor countries and other provinces of Afghanistan caused high rate of artificial growth which slums increased. As an unwanted consequence of this growth, today informal settlements have covered a vast portion of the city. Land Readjustment (LR) has proved to be an important tool for developing informal settlements and reorganizing urban areas but its implementation always varies from country to country and region to region within the countries. Consequently, to successfully develop the informal settlements in Kabul, we need to define an Afghan model of LR specifically for Afghanistan which needs to incorporate all those factors related to the socio-economic condition of the country. For this purpose, a part of the old city of Kabul has selected as a study area which is located near the Central Business District (CBD). After the further analysis and incorporating all needed factors, the result shows a positive potential for the implementation of an adaptable Land Readjustment model for Kabul city which is more sustainable and socio-economically friendly. It will enhance quality of life and provide better urban services for the residents. Moreover, it will set a vision and criteria by which sustainable developments shall proceed in other similar informal settlements of Kabul.