Most of the energy consumption of buildings in Iran comes from oil, gas and electricity sources, while fossil fuel resources are running out in Iran. In addition to that, the country's average energy consumption is higher than other countries and even some oil-rich countries, while government subsidies and cheap oil and gas resources has exacerbated this critical situation. Buildings and houses with an average consumption share of 42.41 percent has a high share of energy consumption of the country and renewable energies are used only marginally. In contrast to this situation, Iranian cities, for thousands of years, have had a low consumption pattern of energy with the use of architectural and urban construction techniques and have come to a permanent and sustainable coexistence with their surroundings. This research seeks to understand the principles and techniques of constructing the traditional urban architecture of Yazd in the centre of Iran to provide in-depth insights toward energy optimization in urban areas. Moreover, the global methods of sustainable urban development are studied and compared to extract a set of guidelines for improving urban conditions in the traditional areas of Yazd. This research is fundamental in terms of orientation, and the purpose is exploration and being applicable. The compilation of the required data is done in two ways firstly) documentary method with the use of historical texts, authoritative writings of historians, and review of urban development plans such as comprehensive and detailed plans, and secondly field observations and meetings with practitioners and faculties have been conducted. Based on the gathered information, analysis of the current situation in the studied area has been carried out using qualitative descriptive method. Finally, with the consideration to the centralized urban management system of Iran, we proposed a method for transferring these results to the administrative sectors?