Kabul is faced with widespread informal settlements which are characterized by severely inadequate urban services and low quality of life, however the government has taken some steps for developing of informal settlements through upgrading policy but it could not properly solve the issue, therefore we proposed an Adapted Land Readjustment (LR) model to be sustainable and economically friendly. This paper looks into a comparison in terms of the cost and benefit analysis of an adapted LR with upgrading model which was prepared for developing of the same target area to figure out the most sustainable and feasible model for developing of the informal settlements in Kabul. The result after further analysis showed a positive potential for the implementation of adapted LR model, it appeared more economically and environmentally sustainable. The model will enhance quality of life and can provide better and standard urban services for the residents.