Floodwater spreading projects, as one of the key methods for runoff management and enhancing natural water infiltration in downstream lands—particularly in arid and semi-arid regions of Iran—play a vital role in reducing flood damages, strengthening the natural recharge of aquifers, and improving the ecological condition of rangelands and rain-fed farmlands. The aim of this study was to systematically analyze the strengths, weaknesses, opportunities, and threats (SWOT) associated with floodwater spreading projects in Iran and to develop optimal strategies for improving their performance and achieving sustainable development through the use of analytical models SWOT and QSPM. In this research, internal factors (strengths and weaknesses) and external factors (opportunities and threats) were identified and evaluated through targeted interviews with experts, managers, natural resources specialists, and university professors. The results revealed that these projects are in a position where adopting conservative (WO) strategies can lead to the best outcomes. Based on the findings, applying advanced technologies for flood modeling and monitoring (such as GIS, remote sensing, and numerical hydrological models), strengthening cooperation among scientific, executive, and local institutions, and enhancing community participation are among the most important strategies that can improve the performance and sustainability of floodwater spreading projects. Moreover, integrating indigenous knowledge with financial support and localization of successful global experiences can enhance these projects’ capacity to cope with challenges such as soil salinity and sedimentation. The results also indicated that environmental monitoring and the use of advanced technologies play a decisive role in improving project performance. Ultimately, this study demonstrates that through appropriate strategies and integrated management, floodwater spreading projects can become an effective tool for mitigating climate change impacts and enhancing water resources management in arid regions.