Experiencing stressful events is an inherent part of life in urban settings; however, when the intensity and frequency of such events increase and existing support systems are unable to absorb or mitigate their effects, psychological strain transcends the individual level and evolves into a broader social and structural concern. Findings from a 2023–2024 population-based survey in Tehran indicate an alarmingly high level of psychosocial stress among residents: 92.3% of participants reported experiencing at least one severe stressor in the past year, and 25.9% exhibited symptoms consistent with generalized anxiety disorder. Economic pressures, uncertainty about the future, housing costs, and job insecurity were the primary contributors to this burden, with individuals exposed to severe stress for an average of 8.5 months during the year. The consequences of this situation range from deteriorating mental health and impaired social functioning to reduced productivity and the erosion of social capital. Drawing on survey data and global evidence, this policy brief outlines actionable interventions to address urban stress, strengthen psychosocial and mental health services, and improve underlying economic and environmental conditions