This research was designed to investigate and select the optimal strategy for the Ilam municipality using the SWOT-ANP combined model. The research method in this paper is descriptive-analytic and based on the objective purpose. The data gathering tool, the questionnaire and the statistical population of the study consist of 49 experts in Ilam municipality. A SWOT-ANP combination model was used to analyze the data. In the process of analyzing and selecting the optimal strategy for the Ilam municipality, the Internal Factor Assessment Matrix (IFE), external factor assessment matrix (EFE) were used. Based on the results obtained, the total scores of the strengths and weaknesses, the opportunity the threats in the Ilam municipality are equal to 1.60, which is far from the average (2.5). This suggests that the Ilam municipality does not have proper internal conditions, so that the municipality (Ilam) is weak in terms of internal and external factors. The results also showed that SO strategy has the highest weight and is considered as the best activity strategy and the willingness of private sector investors to cooperate in the development of urban space and the existence of suitable field for Ilam city investors such as Ilam city traffic and the
proximity to Mehran border is selected.