Abstract : In the midst of the growing global pursuit of happiness, and the increasing suffering of residents of capital cities from urban issues, a new approach appears that claims urban happiness, which puts people's emotions is the core of urban design to improve their happiness. Egypt had a low level of happiness over the last decade [1], as Egyptians' satisfaction with the aesthetic or physical setting of the city declines [2]. This study examines the relationship between urban form and residents' happiness in Egyptian communities. The present study uses a theoretical review-derived measure of perceived urban happiness, using a quantitive analysis by two techniques of the Estimate structural equation models (ESE), that are the PCA and 2SLS techniques of results of a survey conducted with 320 residents from 19 Greater Cairo neighborhoods, including 9 neighborhoods in the original urban communities (OUC) and 10 neighborhoods in the new urban communities (NUC). The study found that neighbourhood upkeep, open space quality, and distance from the park significantly affect perceived urban happiness (PUH). In the OUC, building aesthetics, building colors, street ratios, and green space had a positive impact on the PUH while high building density and high noise levels had a negative impact. In contrast, good utilities, accessible public transit, and nearby daily services have a positive effect on the PUH in the NUC; Additionally, residents' happiness (H) and PUH are significantly correlated; A happier residents are those who live in neighborhoods that provide them with residential hedonism through enjoyment, diversity, aesthetics, and attractiveness, and residential satisfaction through comfort, service satisfaction, identity, safety, health, and neighborhood Satisfaction, while also reducing residential discontent due to stress, anxiety, and disaffection. The decision-makers and urban policies should be aware of the urgent emotional requirements and aspirations of people towards their residential neighborhoods in each local community in order to achieve and increase the residents' happiness.