This study explores the sustainability transition in Iran's oil towns, emphasizing Masjed Soleyman’s evolution. Stemming from the Industrial Revolution, the search for new energy led to the early 20th century D'Arcy Concession, catalyzing oil exploration in Iran. This resulted in the pivotal discovery of oil in Masjed Soleyman in 1908, transforming an uninhabited area into a thriving town intricately linked to the Anglo-Persian Oil Company (APOC). This research critically analyzes the unsustainable nature of oil exploration, particularly highlighting APOC's colonial practices, (...) like racial segregation between European and Iranian staff. Despite these challenges, the study identifies pathways for sustainable development, emphasizing the role of Masjed Soleyman's oil heritage. It advocates for the adaptive reuse of historical buildings for diverse community functions, thereby promoting sustainability and cultural preservation. This approach not only safeguards the town's rich historical and cultural fabric but also marks a significant stride towards sustainable urban development in oil-dependent towns. (shrink)