The construction industry is a significant sector worldwide, particularly in the context of environmental challenges and economic circulation. By introducing prefab as one of its new technologies, the construction industry has provided this opportunity for experts and stakeholders to contribute to realizing the pillars of sustainability during the life cycle of a building. This industry significantly impacts the environment due to high water and energy consumption, waste production, and CO2 emissions, among other factors, and adopting sustainable prefabrication methods can contribute to a greener future. This study wants to explore the characteristics of prefabrication and its implementation in the construction industry to enhance sustainability criteria and decarbonization, as well as to comprehend its effects on achieving greater efficiency and minimizing negative impacts on the utilization of limited land resources. By recognizing the importance of this issue, the article first reviews the literature to identify crucial prefabrication criteria and sustainability aspects present in articles and sustainability standards. Subsequently, it assesses these factors through a questionnaire approach and then analyzes the results using the AHP technique. As a result, the significant aspects of prefabrication and its beneficial impacts on enhancing sustainability in all three dimensions were identified.