This study aims to understand the characteristics of a successful waterfront design and suggests an appropriate environmentally friendly approach to the waterfront design for Busan’s Young-do islet in Korea. This research will provide the basic data to help raise the quality of citizen life on Young-do Islet by minimizing the environmental impact and by providing the considerations for the waterfront setting, where the natural and artificial environment can be seamlessly harmonized with the local residents. Literature reviews were researched to understand the definition and characteristics of waterfront settings and to analyze the successful foreign and domestic cases including seashore, riverside, and lake cities. As a second step, three representative waterfront areas in Busan city were visited and analyzed in terms of natural, social, cultural, economic, and environmental aspects. Third, the considerations for a waterfront setting were developed throughout the case analysis. Fourth, the specific site was selected, analyzed, and designed based on the consideration for a waterfront setting. As a result of literature reviews and case studies, the considerations for waterfront settings are as follows: 1)appropriateness of the site, which includes the allocation of the area for walking and other functions 2)spatial configuration for convenient vehicle traffic and easy circulation 3)borderline between the setting and other surrounding areas to protect users' privacy 4)harmony between natural and artificial environments 5)a unified image for building exteriors and other installations 6)use of environmentally friendly materials and color plans that consider the regional landscape 7)consideration for expansion of facilities regarding oceanic climate such as tidal waves and typhoons. The design was developed in the following steps: first, user needs and activities for space development were analyzed, such as a water friendly leisure zone to support local activities, a sightseeing zone for visitors, and a common relaxation zone for both; second, a “flowing” design concept related to organic form was developed considering the association with the surrounding nature and water. The organic form reflects the harmony with the landscape and symbolizes the organic connection between man and nature; third, idea sketches by both hand and 3-D computer drawing were repeated to specify the design image and form; fourth, circulation and zoning plans were conducted.