Population growth and urbanization are global issues that the world must face. Increased pressure on the socio-economic welfare of the community, the environment, and living standards can lead to poverty. Several countries in the world, including Indonesia, are trying to overcome these challenges in line with the Sustainable Development Goals (SDGs). Semarang City is one of the cities that is committed to tackling poverty in 2016-2021 through the "Great Gate" program. One of the tangible manifestations of responding to poverty alleviation in Semarang City is the Thematic Village program, which requires a minimum of two urban villages for each sub-district in Semarang City. This paper aims to identify or assess the potential for sustainable thematic villages. A qualitative approach is used in this study. Through a case study in Batik Rejomulyo Village, several strategies were formulated using a SWOT analysis. The results show that there are several potentials that Rejomulyo Batik Village has, including a reasonably strategic location, the presence of skilled batik-making resources, a friendly community, and the opportunity for tourism integration with the Old City. Batik Village's existence can improve the community's quality of life, provide opportunities for the district to manage its environment, improve social relations and strengthen social ties through an institution. This shows that thematic villages could encourage the realization of sustainable settlements.