Previous studies have paid scarce attention to engagement of various stakeholders in urban development projects. Therefore, this paper examines the possibilities of using digital tools to enhance stakeholder participation in urban development projects and how digital tools may be associated with value creation in the project planning phase. This qualitative case study builds on data we collected through 17 semistructured interviews and participation in four planning workshops in a middle-sized city in Finland. Our data analysis resulted in a categorisation consisting of six types of digital tools that can be used to engage stakeholders in urban development projects. Our results indicate that digital tools provide multiple opportunities for stakeholder participation and that each tool is associated with specific benefits and sacrifices that contribute to value creation. Furthermore, digital tools were found to positively influence project success and stakeholder satisfaction. Our study offers practical recommendations, especially regarding social media, for effectively integrating various stakeholders, including individual citizens and private actors, into urban development projects.