After Morocco gained independence in 1956, the country's historic cities, including Fez, Marrakesh, and Meknes, experienced rapid urban growth, decay, and the destruction of their rich cultural and architectural heritage. The rise in urbanisation, redevelopment projects, and tourism has raised concerns related to the urban gentrification and social sustainability of local communities. In addition, the influx of large-scale foreign investments and the conversion of traditional Moroccan houses into riad hotels have sparked tensions over land use, economic shifts, and the ongoing exploitation of historic cities. This research presents a case study of the world heritage city of Fez in Morocco, where these dynamics are particularly significant, as efforts are made to balance conservation and modern needs. The main question to be addressed is how can the surviving historic centres be regenerated while ensuring social sustainability for their inhabitants? The primary objective of this study is to explore the multifaceted urban regeneration strategies in Fez, focusing on urban planning, conservation efforts, economic revitalisation, and social development. Employing a mixed-method approach, this study draws on desk research, content analysis, fieldwork, observations, and qualitative interviews with key stakeholders. The findings suggest that the previous strategies focused on physical development and riad hotels to boost cultural tourism and tourist accommodation, exacerbating the gentrification and socioeconomic stratification of the local community. This study emphasises the “Ziyarates Fez” project, which provides an innovative approach to rehabilitating and reusing traditional houses for tourism accommodation without displacing local occupants. Furthermore, this project represents a holistic strategy for balancing economic and social sustainability in urban regeneration. This paper contributes to the expanding body of research on sustainable urban regeneration in historic cities. These results are anticipated to benefit academic research and the implementation of regeneration strategies in historic cities in Morocco and worldwide.