The development of a modern urban environment and a competitive urban economy is dependent of policy instruments that allow the city to position itself and take a leading position in rapidly changing markets of goods, services and information. At present, the positioning of the urban environment in the world is based on sustainability policies. Triple Bottom Line considers three dimensions: economic, social and environmental. In order to ensure the sustainability of the city, all the processes within the city should overlap all dimensions of Triple Bottom Line. However, there is still discussion whether and at what level the sustainability in urban environment is possible. The authors used literature review to explore the interaction between economic, social and environmental dimensions in urban environment. Results show that there are great links among them. It is often necessary to sacrifice elements of one dimension in order to get advancement in another. Conflicting interests between employer and employee cause the main conflict between economic and social sustainability. Even though social and economic dimensions are conflicting, they are vitally crucial for each other. The greatest future challenge is the conflict of economic and environmental dimensions as the economic growth of the city and biodiversity conservation are headed opposite directions.