Abstarct: There are rich dimension stone mines in Iran. All of the existing dimension stone mines in the country are mined open-pit. Environmental problems and pollution of open-pit mines on the one hand and deepening of these mines, high costs of tailing and limited surface reserves on the other hand, are the most important factors cause moving toward the underground mining of natural stone reserves. Underground mining methods of dimension stone reserves reduce environmental problems and damages, tailing costs and produce high quality products. The purpose of this study is to evaluate the economic feasibility of applying underground mining methods in overburden dimension stone mines using Camfar software. In first section of this study, the topics of dimension stones, types of open-pit and underground mining methods, economic problems in overburden dimension stones and various environmental problems of open-pit mines are discussed. Then economic feasibility study for two methods of open and underground mining for kapiol dimension stone mines carried out. The feasibility results showed that, the net present value for open-pit mining method is 3,151,829,000 Rials and the internal rate of return is 15.50 percent and for underground mining method the net present value is 91,281,973,000 Rials and the internal rate of return is 29.60 percent, which indicates that economically the underground mining method is preferable to the open-pit mining method. The sensitivity analysis test also performed for the three parameters of sales revenue, fixed assets and operating expenses. The results showed that with a 20% decrease in stone sales revenue and a 20% increase in investment and operating costs, the open-pit mining method has no economic justification but the underground mining method would be economically feasible.