Sustainable development of cultural tourism, as one of the key issues in the field of tourism, has attracted special attention in recent years with the aim of preserving indigenous cultures, improving the quality of life of local communities, and protecting the environment. Isfahan, as one of the most important cultural tourism destinations in Iran, needs a model that can provide a balance between attracting tourists and preserving cultural identity. This study aimed to identify and introduce the components of a sustainable cultural tourism development model in Isfahan using the grounded theory method. The research followed a qualitative approach based on the systematic paradigm of Strauss and Corbin. Data were collected through semi-structured interviews with 16 experts and specialists in the field of cultural tourism in Isfahan, using purposeful and snowball sampling until theoretical saturation was achieved. Data analysis through open, axial, and selective coding resulted in 77 initial codes and the formation of a final paradigmatic model. The model includes the core phenomenon of "managing a sustainable balance between attracting cultural tourism and preserving identity authenticity," causal conditions (macro-environmental pressures and opportunities, structural changes in the market and host community, economic and governance necessities), contextual conditions (physical and service infrastructure, richness of cultural capital, institutional support and social participation), intervening conditions (governance challenges, external economic threats, social and marketing barriers, infrastructural shortcomings), strategies (participatory institutionalization, innovation in cultural experience delivery, local community empowerment, development of historically-aligned infrastructure), and outcomes (economic prosperity, social cohesion, environmental preservation, international credibility). The findings indicate that achieving sustainable cultural tourism development in Isfahan requires balance-oriented management and the implementation of integrated strategies with the participation of all stakeholders.