The present study aimed to investigate the environmental and perceptual factors associated with users’ happiness by analyzing the objective and subjective dimensions of the environment in Eram Pedestrian Street in Qom. In this study, users’ happiness was considered as an experience associated with the presence and use of Eram Pedestrian Street as a public space, which is shaped in relation to environmental qualities and users’ perceptions of the space. This applied research employed a descriptive-analytical method. Data were collected through a questionnaire and analyzed using structural equation modeling. The model fit indices indicated a good fit of the proposed model to the data. The results of the measurement model for the objective dimension showed that the characteristics of spatial amenities and comfort and visual characteristics both had the highest association with the objective dimension of users’ happiness, with a path coefficient of 0.98. Among these, seating spaces and environmental cleanliness were among the most important indicators. In the subjective dimension, the perceptual component, with a coefficient of 0.77, showed a stronger association with the construct of users’ happiness than the social life component; in particular, spatial legibility and vitality were among the most important indicators of this dimension. The findings indicate that users’ happiness in Eram Pedestrian Street is associated with a set of objective environmental qualities as well as perceptual and social components, and that considering these dimensions simultaneously can be taken into account in the assessment and design of urban public spaces.