In response to the global phenomenon of significant degradation within inner cities, this paper addresses the urgent need for sustainable urban rehabilitation strategies. Recognized as a paramount priority within educational and implementation of urbanism, architecture, engineering, and construction, the conceptualization and implementation of innovative projects stand as pivotal endeavors. Beyond mere ideation, the effectiveness and functionality of sustainable urban solutions are manifested in their practical application. This paper introduces a comprehensive sustainable rehabilitation model adapted to existing neighborhoods, with a specific focus on a case study. By leveraging this model, it is proposed to counteract and halt the ongoing degradation plaguing urban areas, thereby revitalizing the vitality and livability of existing neighborhoods. The proposed framework not only offers a model for sustainable urban development but also serves as a catalyst for the creation of smart cities, where innovation converges with environmental protection and social cohesion. Moreover, it emphasizes the fundamental role of educating students about urban rehabilitation models that promote sustainable development and the generation of smart cities.