Abstarct: Ship recycling is one of the most profitable and high-yielding industries in the maritime sector, yet despite Iran's natural potential, it has seen minimal growth. This research aims to investigate the feasibility and requirements for establishing ship recycling factories or yards along the southern coasts and islands of Iran. In this regard, international standards and regulations such as the Hong Kong Convention and national environmental requirements have been analyzed. Additionally, technical and infrastructural factors including water depth, necessary infrastructure such as roads and railways, labor force, required technologies and equipment, recycling potential, and the role of investment have been evaluated. The environmental impacts of the ship recycling process, including soil, water, and air pollution, have been examined, and solutions to mitigate these impacts through modern technologies have been proposed. The results of the study show that the southern coasts of Iran and the Persian Gulf islands, due to their strategic location, access to international shipping routes, and the availability of human resources, have significant potential for the establishment of such facilities. On the other hand, Iran, as the tenth-largest steel producer in the world, despite having numerous steel mills and inexpensive energy, has paid minimal attention to this profitable and job-creating industry. Legal requirements, environmental and waste management issues, and the need for technical infrastructure that requires investment, along with competing countries that have cheap labor and are not committed to environmental issues, are considered major challenges for the growth of this industry. Finally, by providing a feasibility model, the prioritization of suitable areas for the establishment of these factories is carried out, and sustainable and economic implementation solutions for this project are presented, including attracting foreign investors through methods such as BUY BACK or BOT.