The present study provided a comprehensive overview of the current state of research on the Urban Metaverse, focusing on its integration into urban planning and design, as well as the ethical, social, and economic implications in urban settings. This study aims to evaluate the present standing and scope of the metaverse in the context of urban planning and city design; investigate the obstacles and remedies in integrating metaverse components into urban spaces; and explore the ethical, social, and economic ramifications of the metaverse in urban settings. The methodology involved a qualitative investigation of the relevant literature using academic databases and a review of thirty-two selected studies published between 2022 and 2024. The findings emphasise the changing nature of interpersonal relationships, potential alienation from physical spaces, and ethical implications of technology-driven urban changes. The study also highlights the potential opportunities and challenges associated with incorporating the metaverse into urban environments and offers strategies to address these challenges, including the formulation of data protection regulations, expansion of infrastructure, and ensuring equal access for all residents. The implications of the findings underscore the necessity of regulatory frameworks, technological investments, ethical considerations, and inclusive governance structures to ensure inclusive and sustainable urban development in the emerging era of the metaverse.