Abstract: Today’s planet has became as a village in its whole, leading to the necessity of planning the smallest planning unit as a model for a broader world by following bottom-up approach and emphasizing mainly on residential neighbourhood with adopting wiser way for development through respecting historical function and methodological relationship among urban forms and social processes. Residential neighbourhood is an indispensable element in planning a sound environment, it’s the most important component in human belonging. Increased urban growth, widening urban life style, increasing resource use in addition to all the social, economic and technological changes require adopting new urban life styles that are socially accepted and less resource consuming by integrating urban forms with socio-cultural life styles and conserving environmental resources. Accordingly, this research focused on knowledge deficiency in specifying the most influential characteristics, indicators and aspects for redeveloping the concept of contemporary residential neighbourhood which should be enhanced, reaching to building an integrative conceptual model to establish residential neighbourhood that respond to contemporary urban trends through describing its characteristics and deriving its indicators with hypothesizing ‘building integrative conceptual model for redeveloping residential neighbourhood helps in formulating sound planning principles which guarantee the promotion and advancement of residential neighbourhood reality and its continuity. Consequently, this research has studied the concept of residential neighbourhood to specify the conceptual definition of it with depending on contemporary urban trends which encompass sustainable, liveable, healthy, resilience, ecological, compact and smart redevelopment to extract the contemporary residential neighbourhoods and characteristics for creating contemporary residential neighbourhood such as diversity, compacted design, high density, walkability, green space, passive design and decentralized management of infrastructure which works as integrative system. Effective indicators have been built based on the derived characteristics and applied in a residential neighbourhood in the Baghdad to assess it and enhance it according to these indicators.