The present research utilizes the gravity method to investigate Muzaffarabad and its adjacent areas in Azad Jammu and Kashmir. Qualitative analysis included creating various maps such as Bouguer anomaly, free air anomaly, elevation, residual Bouguer anomaly, and regional Bouguer anomaly maps, while quantitative interpretation included computing a geological model along the selected profile A-A'. Although effective in revealing subsurface structural features and the thickness of the sedimentary-metasedimentary wedge, the gravity method is limited by its non-uniqueness and reliance on supplementary geological and geophysical data. The study identified two major faults: the Muzaffarabad Fault (MF) and the Bagh Basement Fault (BBF). The NW-SE contour trend in the north indicates the MF, while the western part shows the Jhelum strike-slip fault trend. The BBF extends from Mahoter to Shahdara and reaches Moho depth. The geological model demarcates the MF within the Miocene Murree Formation, dipping at 49 degrees and connecting with a detachment fault. These tectonically active faults pose a risk of moderate to high-magnitude earthquakes, as evidenced by numerous active landslides and fault-induced deformation. The identification of hanging wall areas of the MF and BBF as unsuitable for heavy structures provides a basis for safer site selection and infrastructure design, while footwall areas, being more stable, are better suited for lightweight constructions. Despite the challenges of non-uniqueness and data dependency, these findings contribute to seismic hazard assessment and advance civil engineering by enabling resilient design strategies, informing sustainable development, and mitigating disaster risks in this earthquake-prone region.