The capital Kabul is growing at a fast pace than any other city in Afghanistan, it experienced a dramatic expansion over the past decade. The population has increased by almost 10% per year which caused a significant increase in the number of slums, as an unwanted consequence today informal settlements have covered about more than 69% of the city. This paper explains an afghan model of Land Readjustment which applied on an informal settlement area of Kabul with a very minimum compensation and contribution ratio. It appeared more applicable due to the preservation of historical buildings and low destruction cost.