Refugee camps struggle to provide essential infrastructure amid increasing environmental, political, economic, and social pressures, exacerbated by climate change. Additionally, climate change unfolds further concern about the environmental dimension of refugee camps and their sustainability in a long-term perspective. This paper focuses on how traditional camps face challenges due to climate change and proposes solutions through sustainable urban camps. We will discuss how traditional camps contribute to environmental degradation through the comparison of two case studies, while sustainable urban camps adopt eco-friendly practices such as renewable energy and efficient waste management, reducing their environmental impact. We will compare two camps: Al Azraq refugee camp in Jordan showcases sustainable infrastructure, while Kutupalong refugee camp in Cox's Bazar, Bangladesh, faces significant challenges. We will suggest that by prioritizing the well-being of displaced individuals, sustainable refugee camps might aim to meet long-term needs while promoting integration into society and the environment. This paper challenges perceptions of refugees’ environmental impact by examining influencing factors, while sustainable urban camps adopt eco-friendly practices such as renewable energy and efficient waste management, reducing their environmental impact.