:Since the development of System Dynamics, it has been applied successfully to a range of complex problems in different areas. However, relatively little use of the methodology has been made in the field of transportation. This paper attempts to review and evaluate the utility of the System Dynamics methodology for transportation studies, showing that it is well suited to the needs of various analytical problems in transportation. In fact, System Dynamics offers a potential way forward for transportation planning in general. The focus of this paper is on appreciating the strengths and weakness of the methodology of System Dynamics as an aid to reach a better understanding and appreciation of the dynamic, feedback relationships between the transport system and the other major sectors contributing to the development of a new city in the Egyptian desert.