It is against the background of continuous unguided residential landuse transition evident in Nigeria Urban centres with its associated spatial dimension and environmental implications that this paper evaluates the spatio-environmental dimension of residential landuse change along Taiwo road in Ilorin metropolis with the aim of preferring recommendations that will aid the achievement of sustainable urbanisation. To achieve this, 90 questionnaires were administered to respondents in randomly selected buildings within 300 meters delineated area along Taiwo road. Data collected were analysed along strata to give distance decay outfit for the study .The study discovered that the average rental value of buildings in the study area reduces with distance to Taiwo road. This is about N748, 000 for buildings within 100meters, N145, 000 for buildings within 200 meters and N79, 000 for buildings within 300 meters. Analysis of Variance F value of 10.409 with p-value of 0.000 at α value of 0.005 reveals that this spatial variation is statistically significant. In response, numbers of storey of buildings and use of buildings among other characteristics varies across strata. Generally, the predominant landuse in the study area is commercial landuse (55.5%), distantly followed by mixed landuse (24.4%) at the expense of residential landuse (16.7%) which cannot afford optimal investment return for use (0.06).Other factors that causes residential landuse change in the study area includes increase in commercial activities (0.15) and presence of road (0.20). Weighted rating reveals that the environmental dimension of these changes is evident in noise generation (4.64), lack of potable water (4.62) and high crime rate (4.55) among others..