This study presents a comprehensive investigation aimed at identifying the optimal bypass alignment for Najibabad, India. The research team utilized a combination of Geographic Information Systems (GIS), Ant Colony Optimization (ACO), and multi-criteria decision analysis. Advanced software tools, including Google Earth Pro and AutoCAD 2024, were employed to evaluate four different alignment options based on 11 carefully selected parameters. These parameters were normalized using various methods to ensure an equitable assessment. The ACO technique, which mimics the behavior of ants seeking the shortest path between food sources, was adapted to determine feasible routes that connect critical points across the proposed alignments. Five distinct assessment methods were applied to evaluate the options, allowing for a nuanced analysis of each alignment's potential impact. The findings of this study highlight the critical role that parameter normalization methods and the choice of assessment techniques play in shaping the decision-making process. These elements ultimately guide the selection of the most suitable bypass alignment that balances efficiency, cost, environmental considerations, and socio-economic benefits. This research not only contributes to the urban planning literature by demonstrating the application of ACO in real-world infrastructural projects but also provides actionable insights for policymakers involved in sustainable urban development.