<p>Incremental housing, characterized by step-by-step development and adaptability, is one of the approaches suggested in recent decades to improve the informal settlement housing situation. This research explores the concept of this approach as a sustainable development strategy. Using a grounded theory approach, the research systematically reviewed and coded evidence from literature, particularly studies reporting on globally implemented projects, to re-conceptualize incremental housing frameworks and align them with sustainability goals by addressing social engagement, economic feasibility, and environmental considerations. Key findings highlight that social sustainability in incremental housing necessitates active stakeholder involvement, with effective decision-making and partnerships essential for long-term success. Economic sustainability demands affordability and innovative financing solutions to overcome barriers and promote local economic development. Environmental sustainability requires addressing land accessibility issues, ensuring design flexibility, and considering both innovative and traditional materials to enhance quality and meet long-term housing needs. Based on these insights, the study proposes a Sustainable Incremental Housing Model, which synthesizes the three dimensions into a practical framework. Therefore, the proposed model provides a foundational framework for policymakers and planners, guiding the incremental implementation of sustainable incremental housing strategies and contributing to the broader goal of balanced and inclusive urban growth.</p>