Over the past few decades, Oman is experiencing a rapid economic growth associated with the flourishing and maturity of the oil production. The construction sector has seen to be the primary beneficiary with the blooming of many new infrastructure projects that serves the rapid urban development. In line with the booming awareness of the sustainable development of its neighboring countries, many proactive actions from the government and professional bodies attempts to introduce the sustainability concept to the industry. However, the lack of evidence on sustainability progress suggests that these values are not yet at the top of the construction industry agenda. This paper reviews the current application of sustainability in the construction industry in Oman. Informative challenges and opportunities have been identified through market surveys and a qualitative observational research method of current eco-house construction project conducted by Sultan Qaboos University within a competition initiated by the research council in Oman. The proposed recommendations of this study shall help promoting and improving the sustainability application in the Omani construction practices in the future.