Urban squares, as important social and cultural centers, play a vital role in shaping local identity and strengthening social relations. The study evaluated the effects of the Al-Ghadir Square reorganization plan in Tehran's Yaftabad neighborhood, analyzed its social, cultural, and physical dimensions, and examined the challenges and achievements of this urban intervention, based on which Al-Ghadir Square, as one of the key public spaces, faces challenges in social, cultural, and physical dimensions. The results showed that although the plan has been successful in improving visual quality, promoting security, and organizing pedestrian spaces. However, in the social and cultural dimensions, the reduction of neighborhood interactions, weakening of traditional relationships, and the failure to strengthen local cultural identity remain important challenges. Economically, while some businesses have benefited from improved sales, others continue to face economic problems. This research, using a mixed method (quantitative-qualitative) and field data analysis, shows that physical designs alone are not sufficient for recreating the square and that there is a need to strengthen participatory processes and pay attention to the soft dimensions of public spaces, such as strengthening the sense of belonging and social capital. Therefore, it is necessary to emphasize the necessity of human-centered, participatory, and culturally sensitive design and take additional measures to strengthen local identity and develop social participation in the later phases of the project. The results of this study can be used as a guide for similar projects in other urban areas.