Abstarct: Besides numerous planning and executive challenges, underground excavation in urban areas always follows with some destructive effects especially on ground surface. Settlement and surface building damage are the most important of these effects. Thus, recognition of these effects and their ruling principles and then, estimation and controlling them are significant part of underground projects in urban areas. Prediction of settlement values and surface building’s damage induced by underground stations excavation in Tehran Metro, Line 7 are the purposes of this thesis. As the first step, settlement, its properties and different settlement prediction methods has been discussed. Then studding on damage estimation methods has been followed by presentation an standard approach for surface building damage estimation and classification. Between eight stations, located on phase 1, three of them which had more critical situations have been chosen for detailed studding. At the most important part, settlement values has been estimated through numerical modeling with FLAC3D software and then damage risk classification for surface buildings has been carried out. Finally the class of damage risk remained negligible and very slight for all buildings.