Economic development is a key concept and a primary factor in good governance and national progress. However, true economic transformation and progress depends on sustainable development. A crucial aspect of sustainable economic development is the integration of economic advancement with environmental protection. Article 50 of the Constitution of the Islamic Republic of Iran addresses environmental protection and the concept of sustainable economic development. This descriptive-analytical research examines the relationship between the environment and development, as well as the indicators and requirements for sustainable economic development as outlined in the Constitution of the Islamic Republic of Iran. It analyzes governance approaches in various sectors in achieving this goal and identifies the challenges and solutions for realizing the sustainable development envisioned by the Constitution. The findings of this research show that while sustainable development and environmental concerns have received significant attention in policymaking, the legislative and implementation phases face numerous challenges. Furthermore, constitutional oversight and judicial review have taken a minimalist approach to environmental restrictions. Key challenges identified include structural weakness of the Environmental Protection Organization, personality-driven environmental management, air pollution, weak monitoring and control mechanisms, and the lack of a comprehensive environment impact assessment legislation. To address these challenges, the research proposes solutions such as reducing government involvement in large industries, implementing environmentally conscious strategic management, introducing green taxes, and enacting comprehensive environmental impact assessment legislation.