Victoria Dock is next to part of the historic town wall
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A review into a controversial £27m docks development could put Caernarfon Castle's status as a world heritage site at risk.
The Victoria Dock scheme has already been criticised after Gwynedd Council sold the site to developers for £1.
Now UNESCO, which awards world heritage status to buildings, has said it is considering the development's "impact" on the nearby castle and town walls.
Gwynedd County Council said they had not been contacted by UNESCO.
It is not known when UNESCO - United Nations Educational, Scientific and Cultural Organisation - plan to undertake the review.
But in a statement, UNESCO's International Council on Monuments and Sites, said: "The potential impacts of this project development on the outstanding universal value of the property will be evaluated."
The review could recommend placing the castle's status in the body's "at risk" category.
Taj Mahal
Caernarfon Castle and the old town walls were awarded World Heritage Status in the 1980's, ranking it alongside some of the world's most famous buildings including the Taj Mahal.
It was selected as one of the "finest examples" of late 13th Century military architecture in Europe.
Bob Morris, lecturer in heritage management at the University of Wales, Bangor, said it is an important marketing tool for the town.
"To be in the same class as the Great Wall of China, the Taj Mahal and the pyramids is really quite something," he added.
Hywel Roberts, chairman of the town's Civic Society said he believed any potential effects of the Victoria Dock development would have been identified before planning permission was granted.
Flats, shops and a health centre are being built at the old dock
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He added: "I thought CADW would have looked into the situation when they studied the plans."
Original plans for the Victoria dock area were called in by the Welsh Assembly Government after Cadw, which looks after historical monuments in Wales, voiced concerns.
But when new plans for shops and flats were submitted, it was decided the matter should be dealt with by the local authority, Gwynedd County Council.
The council sold the plot for £1 in June 2006, claiming the price "reflected the extensive liabilities and costs attached to developing the site".
A council spokesman said they had not been contacted by UNESCO, but they were aware all sites were constantly monitored.
He added: "It should be noted that the revised plans for the Victoria Dock development were developed in full consultation with CADW, the Design Commission and the Welsh Assembly Government."