The challenges of upgrading and urban development are one of the most important new planning tendencies to deal with the current difficulties in slum areas which represent an encounter that grasps hazardous degree in terms of urban, social, and economic terms. However, at the same time, it may convey opportunities equivalent to challenges by upgrading and developing those areas through attaining Sustainable development Goals besides the preservation of the natural environment.  The research aims to boost and raise the challenges of urban upgrading and development and its role in activating the methods of government intervention to reduce the negative possessions in slum areas. Shubra Misr district is considered a case study and an attempt to present an approach through which the pros and cons can be identified and applied within any type of slum area to meet the challenges of upgrading and the appropriate development methods according to the characteristics of these areas, through studying the fundamentals and standards of the proposed system on the challenges of upgrading slums and policies dealing with it, then applying those methods on the case study within the framework of the systems dealing with the district and the difficulties it faces, where the appropriate development plan is determined including the abstraction of the means of challenges of upgrading and urban development of slums. The study depends on understanding the nature of the slum areas, identifying their patterns, involving them in upgrading and development policies that are compatible with each pattern, and achieving social and economic development aligned with urban development to reach an analytical approach to the current situation of the area and come up with pragmatic outcomes within the case study by studying its pros and cons. The research ends by developing a proposed methodology for upgrading and developing the case study area "Shubra Misr district", in addition to setting the foundations and criteria for structuring the system challenges to upgrading and development in slum areas.