The spread of environmental challenges and increasing pressure on urban management financial resources have increased the need to review traditional methods of identifying, measuring, and controlling municipal costs. By providing relevant financial and environmental information, urban green accounting can be a basis for identifying environmental costs, controlling resource consumption, improving resource allocation, and supporting sustainable decision-making in municipalities. The purpose of the present study is to analyze the role of urban green accounting in managing costs and achieving sustainable development in municipalities. This study is applied in terms of purpose and descriptive-analytical in terms of nature and method, and is a scientific-review study.The research data was collected through library and documentary methods and through reviewing books, scientific and research articles, reports, documents and domestic and foreign studies related to green accounting, cost management and sustainable urban development. The information analysis was conducted using qualitative and argumentative content analysis methods. The research findings show that green accounting has a significant capacity to improve the financial management of municipalities by identifying and separating environmental costs, promoting information transparency, improving cost control, supporting optimal resource allocation and strengthening information-based decision-making. Also, the use of green accounting information can strengthen the field of simultaneous attention to the economic, environmental and social dimensions of urban performance and be in line with the realization of sustainable urban development.However, the lack of integrated green accounting standards, limited environmental information, and differences in the financial and management structures of municipalities are among the important obstacles to the development of this approach. Based on the results, the establishment of a coherent green accounting system and its link to municipal budgeting and reporting can be considered as one of the effective approaches in improving cost management and moving municipalities towards sustainable development