Studying the correlation between religions and cities is conducive to understanding the role of worship in shaping human settlements. Mrauk-U, the capital of the Arakan Kingdom in Southeast Asia during the 15th–18th centuries, was once a regional Buddhist center, and the pagodas distributed throughout this city demonstrate the visible influence of Buddhism. The purpose of this study is to gain a more comprehensive understanding of the significance of Buddhism in Mrauk-U by exploring the correlation between the pagodas and the urban space. Based on first-hand spatial data, historical maps, and archaeological studies, the spatial distribution characteristics of the pagodas in Mrauk-U were analyzed using the methods of spatial and literature analysis. Their relationships with the urban structure, mountains, water systems, and open space were visualized and examined using the GIS platform; then, the hidden historical mechanisms were investigated. This study concludes that Mrauk-U’s pagodas, as urban images, have shaped its sacred urban landscape system, revealing that Buddhism played an important role in shaping Mrauk-U’s physical space and social and cultural characteristics.