In the past few dacades, urbanization and urban growth have been increasing rapidly in many of the developing countries. It is expected that over 50% of the world population will live in cities in 2005. The growing trend indicates that as many as one fifth of all households still remain with housing tenure problems, which they try to solve through very expensive rentals, insecurity, socially and environmentally-hazardous squatting or unhealthy overcrowding, sometimes ending up with none at all. And hence, proper planning is necessary in urban development policies to improve human settlement managements in a sustainable way. This article has tried to handle urban poverty in the Sudan to a reasonable level of detail. It dealt with selected areas with regard to promotion of sustainable human settlement. The study managed to identity some recent progress in Sudanese human settlements, that is, however, still accompanied by numerous serious instances of decline in the urban environment, especially that of the greater Khartoum. Such instances of environmental deterioration are profiled and analyzed by the study with respect to all human settlement aspects of management, land-use, infrastructure, energy and transport. The paper’s conclusion emphasized that improving all these aspects is of high priority.