“Illustory Dreams” is a participatory urban design project located in the Nafaarabad neighborhood of southern Tehran. Developed during a community design workshop, the project addresses spatial and social challenges through a series of shaded modular courtyards that respond to the area's cultural and climatic context. The design integrates flexibility, seasonal use, and cultural symbolism—such as Ta’ziyeh performances and informal education—into an adaptable, grid-based canopy system. Responding to a lack of inclusive semi-public space in the neighborhood, the project blends urban strategy with architectural clarity. It enables both structured activities (like workshops and group learning) and spontaneous gatherings under a lightweight metal-and-bamboo structure. The modularity of the canopy and the openness of the ground plan create layered spatial hierarchies that reflect the hybrid use of space in dense urban neighborhoods. "Dreaming in the Shade" is both a physical intervention and a strategic framework for reclaiming neglected communal spaces through collective authorship.