In recent years, urban management—especially in the metropolis of Tehran—has encountered numerous challenges, including reduced financial resources, rising citizen dissatisfaction, and weaknesses in effectively fostering public participation. This article has been prepared with the aim of examining the main barriers, identifying relevant opportunities, and offering appropriate solutions for enhancing citizen engagement and attracting greater investment in Tehran’s urban governance. The research method is qualitative and descriptive-analytical in nature, and the required data were collected through the review of relevant documents, comparative urban studies, and the analysis of successful experiences in similar cities around the world. The findings of this study indicate that a lack of transparency, inefficiency in communication structures with citizens, and the absence of proper economic incentives are among the most significant and recurring obstacles. On the other hand, the broad potential of modern technologies, global experiences in participatory budgeting, and investors’ growing interest in infrastructure-related projects have been identified as key opportunities.