This chapter explores sustainable urban planning strategies at the neighbourhood level in Prague, with a focus on balancing the interests of residents, developers, and municipal authorities. Against the circumstances of rapid urbanization and increasing housing demand, it underscores the need for neighbourhoods that are sustainable, livable, and functionally diverse. The chapter presents the effectiveness of urban sustainability assessment tools such as BREEAM, LEED, DGNB, and SNTool in the Czech context. Case studies, including the Letňany-Kbely development area, demonstrate the practical application of these tools, while highlighting areas for improvement. The chapter also discusses the development of a customized rating system for Prague, aimed at ensuring that new construction projects meet comprehensive sustainability standards. Additionally, the role of Prague’s digital twin in supporting data-driven decision-making and enhancing urban resilience is explored. The findings contribute to a better understanding of sustainable urban planning and provide guidance for creating neighbourhoods that align with long-term sustainability goals in Prague.