The phenomenon of informal settlement is a structural-functional problem in the field of urban management, especially in developing countries. Given the numerous economic, social and physical causes of this problem, some emphasize social factors as capacity building and empowerment of neighborhoods. Therefore, the present paper, by descriptive-analytical method, examined the main factors and obstacles in the structural empowerment of informal settlement in Ban Baze neighborhood of Ilam city. In order to collect information, field studies and library were used. In this regard, 38 indicators were extracted in four areas of education, participation, institutionalization and institutional Synergistic for analyzing structural barriers of Ban Bazz neighborhood empowerment. To analyze the data, goodness-of-fit test, factor analysis and analytical model of interactive / structural effects were used with SPSS and Mic Mac software. The results showed that the Ban Baze neighborhood follows a stable system. On the other hand, 41 percent of Ban Baza empowerment can be explained through capacity building, institutional co-operation, education and participation. Meanwhile, the "Capacity" component with a special value of 2. 289 had the highest variance (22. 893) and had the largest share in explaining the empowerment of Ban Baze neighborhood. Based on the interactive / structural analysis method, security components (4064843), trust (4809443), the length of the administrative process of preparing and implementing the plans (4957464), and training the youth (4814855) are the most important barriers to informal settlement empowerment. As a result, in order to empower informal settlements, develop security, educate residents and expedite the implementation of civil and social projects in the neighborhood of Ban Bazz in the city of Ilam is essential.