After industrialization, the rapid population growth in cities led to an imbalance in housing supply and demand. As a result, low-income groups constructed their own houses on public lands, introducing the concept of “gecekondu” or squatters into the Turkish planning literature. These squatters, which evolved into socio-economically and spatially problematic urban zones, have become the focus of legal regulations and urban regeneration practices. Although urban regeneration aims to renew deteriorated urban fabric and address the housing needs of low-income groups, the urban form it produces often contradicts these objectives. Today, climate change, rapid urbanization, destruction of natural areas, and high-density, high-rise vertical development models contribute to heat absorption in cities, thereby triggering the formation of urban heat islands. This study is based on the assumption that the Saraycık Urban Regeneration Project has contributed to the formation of an urban heat island. Accordingly, it examines the impact of changing urban morphology on urban heat island formation before and after the regeneration by employing GIS-based remote sensing methods, including LST, NDVI, and NDBI analyses. The findings reveal that, as a result of urban regeneration projects, increased building density and impervious surfaces, the reduction of natural areas, and the proliferation of high-rise structures intensify the urban heat island effect. In the face of climate crises, improving urban quality of life requires that urban transformation be addressed not only in terms of its socio-economic and spatial impacts but also through its environmental dimensions, integrating climate-sensitive and sustainable approaches into project design.