The rapid pace of urbanisation has heightened the need for sustainable urban regeneration projects on a global scale. These projects primarily aim to address the increasing demand for buildings and to cultivate liveable urban environments. Over the years, a substantial amount of data has been collected and analysed as a result of various urban regeneration efforts. These data indicate that the success of urban transformation is influenced by a wide range of interconnected factors rather than the mere creation of new areas to meet demand. The primary objective of this study is to carry out a comprehensive and systematic literature review that assesses the effectiveness of sustainable urban regeneration (SUR) projects. This review examines a range of existing factors, including policies, management practices, and economic considerations, while also highlighting frequently overlooked elements such as climate change. Moreover, the study investigates how these factors influence the success of SUR initiatives and seeks to identify their overall impact on the effectiveness of such projects. Specifically, it explores the common challenges encountered, the criteria for performance evaluation, and the strategies that lead to successful SUR projects while emphasising their interconnections. An in-depth assessment of urban regeneration projects is provided, focusing on performance indicators across multiple dimensions: social, cultural, economic, environmental, and physical. A novel organisation involving all stakeholders and addressing climate change is also proposed to ensure the success of the SUR projects. Lastly, the findings highlight existing gaps in the current literature, offering valuable insights for future research and identifying potential directions for further exploration.