Urban identity as a continuous but shifting notion is a subject of many argu-ments due to globalization, particularly in the context of the urban transforma-tion, which has taken place around the world with the aim of increasing the quality of urban life. Each urban transformation project had some successes and failures. Some of these failures have been caused by the loss of the sense of place and urban identity. The main aim of this article is to reveal the components of urban identity regarding physical, environmental and social dimensions, to provide measure-ments of these elements, and to evaluate the achievements and failures through the Celiktepe urban transformation process. Celiktepe informal settlement is a neighborhood in Kagithane district, which is located on the European side of Is-tanbul and has been experiencing drastic changes for various reasons over a long time. In order to understand these changes, the effects of physical changes in the district’s socio-cultural structure and the impacts of urban transformation on the urban identity, place attachment, satisfaction and quality of life of local residents have been investigated. In this article a literature review, an observational study, and a survey have been carried out in the region for collecting data to analyze the urban transformation in the Celiktepe informal settlement. It has been found that there is a direct interaction between the urban transformation process and chang-es in urban identity and its components.