This research examines marginalization in the Naysar Sanandaj district with a focus on residents' lived experiences, power relations, and social agency. The study was conducted using an interpretive–critical paradigm and a critical ethnography approach. Data were collected through month longitudinal-12 of participant observation, 38 semi-structured interviews, a focus group discussion, and document analysis, and were examined using reflexive thematic analysis. The study's theoretical framework is based on space-production theory, critical urban theory, and Foucault's readings of power and subjectivity. Findings indicate that the formation and persistence of marginalization are the result of processes of spatial exclusion, unequal distribution of urban services, and institutional mechanisms of population control. These processes create a contradictory social position for residents, in which subjugation to the dominant order intertwines with subtle forms of resistance and identity reconstruction. Residents engage in the reproduction of meaning and adaptation to the existing conditions through informal networks of mutual aid and everyday actions. The findings indicate that marginalization is the product of a dynamic interaction between institutional structures and social agency; accordingly, effective intervention policies must focus on improving access to basic services, strengthening local participation, and realizing a “right to the city” approach to achieve spatial justice.