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The objective of this research paper is to determine an urban planning and design process for the informal settlement of Karail, Dhaka. Some little regularization from macro to micro level in terms of infrastructural changes, enhancing informal economy and introducing new economical activities can change the present urban scenario. Also the interactive economic relation within a resilient neighbourhood can help to reduce social segregation. Regularizing the existing house form and initiating the provision for required infrastructure is can provide a new socio-economical network in this informal settings. The planning solution is somewhat a hypothesis yet, as it will have to be checked on site and surrounding conditions in detail. However, this hypothesis has possible potentials of standing very close to the actual solution. This can be a way to empower a vulnerable group with limited resources. Karail witnesses how physical planning is guided by numerous social phenomena and complex economic web. Being a small enclave of wider Dhaka, it can be a strong example while new urban projects will be taken in account.