As an essential component of urban public spaces, urban streets play a crucial role in shaping cities and promoting urban sustainability. This article focuses on innovative streets as a catalyst for sustainable urban transition. It reviews the theoretical discussions, and empirical evidence on innovative planning approaches for urban streets. For that purpose, measures related to innovative streets are divided into two broad categories: urban mobility and urban livability. The results indicate that integrating smart street facilities with the Internet of Things (IoT), adopting a combination of grid and radial street networks, and fostering a safe street environment are vital in promoting urban mobility. Conversely, a walkable, rideable, and human-oriented street environment enhances social interaction and urban livability. The street’s dual function as a commuting and social space highlights the interplay between rising mobility and intensive street usage, leading to competition for street space. To mitigate these conflicts and advance sustainable urban transitions, enhancing street safety, reducing disparities in planning and user behavior, and accommodating the needs of all street users is crucial. Overall, the evidence supports the contribution of streets to sustainable urban transition.