The purpose of this article is to develop a new design framework to improve earthquake resiliency at the neighborhood level. Fooladi neighborhood in Sarpol-e Zahab city, which was severely damaged by the 2017 earthquake, was selected as a case study. The conditions of this neighborhood were studied before, during, and after the earthquake, and it was re-designed based on the criteria of resiliency. This study adopts a qualitative-descriptive approach, and six post-earthquake field visits to assess and re-design the neighborhood. Data were collected through interviews, site surveys, and observations to understand local conditions and ongoing reconstruction process. Using a comparative approach—examining the pre-, during, and post-earthquake phases— and applying resilience indicators, a design framework was developed for re-designing the neighborhood. These indicators were weighted and prioritized using the Analytic Hierarchy Process (AHP). The redesign and decision-making for the Fooladi neighborhood were guided by the prioritized indicators, allowing for minimal interventions while maximizing resiliency. It appears that the factors of urban morphology, the structure and age of buildings, the technology and quality of construction, and the lot areas are more significant in physical resilience. This approach can be applied in similar urban contexts to achieve Building Back Better (BBB) strategies. The originality of this study is proposing a step-by-step approach to enhancing urban resilience at the neighborhood scale, developed through a design framework based on indicators that are generalizable to other similar contexts.