Introduction. In the central quarters of Yerevan, the contemporary development of which formed since 1920s, the problems of organization of courtyard space has been arisen initially. The quarters were built up with old houses and the lack of funds led to the fact that the development was carried out only around the perimeter of the quarters, where new residential buildings were built. As a result, large amount of ramshackle housing stock remained in the center of the quarters. And despite the fact that these plots were intended for the improvement of courtyards, by the end of 1980s the problem was not solved. Since 1992, when socio-economic radical changes took place in the Republic and the state development programs were suspended, the inner quarter space became an object of individual spontaneous construction, which led to chaos in the organization of urban living environment. Such an example is the quarter between the streets Nar-Dos, Tigran Mets, Zavaryan and Khorenatsi — the subject of this research. Identification of the reconstruction opportunities of the quarter between the streets Nar-Dos, Tigran Mets, Zavaryan and Khorenatsi of the city of Yerevan. Materials and methods. The work is carried out on the base of the field observations and published sources by the method of theoretical research, analysis, designing and generalization of the material. Results. The work is composed of the following thematic subdivisions: defining the research boundaries; study and analysis of the present condition of the quarter; project proposal for the reconstruction; socio-economic aspects of the project implementation. The historical process of the forming of the development of city center quarters is generalized, the existing problems are determined. The results of the study and the analysis of the particular quarter development present condition are introduced. The conceptual project proposal for the reconstruction of the quarter, the socio-economic possibilities of its implementation and the expected results are presented. Conclusions. A list of problems are deduced, which are resolving through the proposal. As well data on the effectiveness of the individual indexes during the reconstruction of the quarter is displayed. The results of the work can be introduced in the reconstruction programs of the central quarters of Yerevan city.