In recent years, the use of grounded theory methodology has increased in scientific fields related to the built environment, especially in urban planning and design. On the other hand, researchers' lack of attention to the foundations and methodological considerations of grounded theory and its readings has sometimes led to a type of methodology with eclectic readings, which sometimes lacks and conflicts the nature of the grounded theory methodology and the primary considerations of the intended reading. Despite this, the review and evaluation of the quality of such research in the scientific fields related to the built environment, particularly urban design and planning has been done less. Therefore, the aim of the present study is to systematically evaluate the studies using the grounded theory methodology in urban planning and design in order to understand the appropriate application of the key tenets of this methodology in this field of knowledge and to provide suggestions for future applications. In this regard, the eligible studies have been selected by systematic search of papers published in reliable Persian-language scientific databases applying the systematic review method. After screening the existing studies based on the specified criteria, 44 studies published until 2019 were selected and evaluated based on the evaluation criteria of the grounded theory methodology. The results of the methodological evaluation of the conducted researches based on the grounded theory methodology showed that despite the increasing use of this method in urban planning and design research, many of these research have been unsuccessful in fully and accurately applying the principles and stages of the grounded theory methodology and its readings, and their results have been reduced to a diagram, model and conceptual framework instead of a theory as the expected achievement from the application of this method. In addition, the results of the present study showed that a number of the research only use a set of techniques of the grounded theory methodology including coding or memo writing. Neglecting important processes such as theoretical sampling, constant comparison and in-depth analysis of categories, has caused that these studies did not go beyond the level of description, and while limiting themselves to presenting descriptive themes and narratives, they rarely achieve theory building as the aim of the grounded theory methodology. Based on the findings of this paper, improving the quality of research based on the grounded theory methodology in the field of urban planning and design requires researchers with a correct understanding of the nature, characteristics and principles of the grounded theory and a deep insight of the readings of this method and their differences, in order to measure the appropriateness and justify the choice of the appropriate reading based on the aims and characteristics of the research.