The Dhaka Metropolitan Area is experiencing rapid industrial growth alongside uncontrolled urban expansion, leading to significant land-use conflicts and environmental pressures. This study investigates how to identify the optimal sites for industrial development that support sustainable urban growth by leveraging Geographic Information Systems (GISs), combined with a structured decision-making approach. The analysis incorporates key environmental and infrastructural factors to guide responsible planning aligned with global sustainability objectives. This study integrates spatial variables such as transport accessibility, land use, environmental sensitivity, and infrastructure presence. Up-to-date satellite imagery and land-use information from recent years ensure relevant and precise analysis. The findings indicate that roughly 10-15% of the metropolitan area is highly suitable for industrial activities, predominantly in the eastern and southern sectors. However, a considerable portion of existing industries is situated outside the officially designated zones, with nearly 9% infringing on protected environments, pointing to gaps in land management policies. Additionally, between 2014 and 2020, industrial expansion resulted in the conversion of over 1,100 hectares of natural land, underscoring urgent ecological concerns. Scenario modeling further demonstrates how strategic land allocation can balance industrial growth with environmental conservation. This research highlights the value of integrating a GIS with multi-criteria evaluation to provide a flexible, data-driven framework for sustainable industrial land-use planning.