Freshwater biodiversity underlies severe threats, mainly suffering from habitat degradation by anthropogenic land use, in particular by urbanisation. However, recent long-term studies indicate recovery of stream macroinvertebrate diversity due to improved water quality at least in North America and Europe. We monitored macroinverbrates at 56 urban stream sites over a 12-year period (2009–2020) in Braunschweig, a German urban district. We utilised these data to investigate spatio-temporal changes in taxon richness and assemblage structure as well as factors potentially affecting the resulting patterns. Overall taxon richness was increasing over the study period, comprising both all taxa and taxa being indicators for healthy stream conditions. 53.6% of the sites had significant positive trends becoming most eminent since 2014, despite decelerating since 2018, the beginning of an extra-ordinary dry period. Only 10.7% of the study sites had negative trends. Assemblage structure was shaped by environmental factors like stream width and water quality. Over-average taxon richness including positive trends and higher numbers of indicator taxa of healthy stream conditions was found in streams with higher flow velocity, good saprobic conditions and more natural streambed structure. In contrast, low taxon richness and predominance of tolerant taxa were found in streams with more degraded conditions. Most of the environmental conditions having positive effects on taxon richness were improved by various programs set up by the environmental authorities. We therefore conclude, if urban stressors like organic pollution and structural degradation can be mitigated by revitalisation and water quality improvement, urban streams can have good potential for increasing biodiversity and improving ecological functioning.