Formalizing Informality in Urban Madagascar examines the intersection of law and urban development in Madagascar's informal sector. A qualitative approach using case studies from Madagascar’s capital city to explore legal frameworks and their impact on the informal sector. Legal reforms are essential to harness the potential of an expanding informal economy while addressing regulatory gaps and fostering sustainable urban development. Policy recommendations include strengthening legal frameworks for micro-enterprises and enhancing community-based initiatives that promote formalization without stifling growth.