Abstract: The Kingdom of Bahrain has recently witnessed the phenomenon of urban sprawl, which has had a negative impact on the environment and sustainable development. Therefore, one urban planning approach that can reduce environmental problems and contribute to pollution reduction is the application of the theory of compact cities. This study aims to explore the main challenges that may limit the application of the compact city theory in the Kingdom of Bahrain and identify the factors necessary to design and redesign cities in the Kingdom. The study also examines the requirements necessary to develop prosperous compact cities in Bahrain. This is a cross-sectional descriptive study involving a qualitative analysis approach. The data collection process is divided into two main stages. To achieve the first objective of investigating the requirements and exploring factors for creating a compact city, a case study analysis of three cities in the world - Gothenburg, Copenhagen, and Utrecht - is conducted. To achieve the second objective of identifying challenges and gaining insight into obstacles associated with implementing compact city concepts in the Kingdom of Bahrain, interviews are conducted with academics and specialists from the public and private sectors. The main challenges of creating a compact city in Bahrain identified in this study are culture, lack of public transportation, and the misalignment of Bahrain's policies and regulations with some compact city strategies. However, despite these challenges, there is a chance of success for this idea in the Kingdom of Bahrain through increasing public awareness and creating a well-designed public transportation network.