We present a seismic source characterization model for the probabilistic seismic hazard assessment (PSHA) of the Isfahan urban area, Iran. We compiled the required datasets including the earthquake catalogue and the geological and seismotectonic structure and faults systems within the study region to delineate and characterize seismic source models. We identified 7 relatively large zones that bound each region with similar seismotectonic characteristics and catalogue completeness periods. These regions were used for calculating the b-value of the Gutenberg–Richter magnitude recurrence relationship and for estimating the maximum magnitude value within each region. The earthquake recurrence parameters were then used to build a spatially varying distributed earthquake rate model using a smoothed kernel. Additionally, based on a fault database developed in this study and on a local expert’s opinion supported by tenable constraints about their slip velocity, a fault-based model is also created. We further performed sets of sensitivity analyses to find stable estimates of the ground motion intensity and to define alternative branches for both the seismogenic source and ground motion prediction models. Site amplification is considered based on a Vs30 map for Isfahan compiled within this study. The alternative source and ground motion prediction models considered in the logic tree are then implemented in the software OpenQuake to generate hazard maps and uniform hazard spectra for return periods of interest. Finally, we provide a detailed comparison of these PSHA outcomes with both those presented in the 2014 Earthquake Model of Middle East (EMME14) and with the national seismic design spectrum to further discuss the discrepancies between hazard estimates from site-specific and regional PSHA studies.