Different visions about good city present perspectives about desirable society and can be used as criteria for assessment of different settlements. Besides that, this perspectives and theories provides guidelines for urban planners and urban designers. Recognition of the underlying values of this theories is urgent for employment of them in a given context. On the other hand in a given context, planners and designer should present suitable criteria based on indigenous values and characteristics. In this article we explain and present the characteristics of good city in Iran-Shahri thought. For this purpose, we use situational analysis. SA, as one of the various versions of grounded theory, is a research methodology that uses the situation broadly conceived as the unit of analysis. As a result, this article propose 14 sub-category and 5 category as the characteristics and components of good city in Iran-Shary thought. The categories are: livability, timing, reason, identity and interaction.