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In recent years, urban regeneration strategic plans have been implemented across South Korea to curb the negative impacts of depopulation, physical deterioration and economic decline. By adopting a people-centered regeneration process, context-sensitive plans are formulated by integrating local people’s perceptions and expectations. This paper examines urban regeneration plans implemented in Ami-dong Tombstone Cultural Village, a declining hillside village in Busan, using “people–place–process framework of place attachment” to analyze the process of articulating “sense of place” through community-driven approaches. Based on archival research, site investigations, secondary data and semi-structured interviews, the paper explores the revival of social capital, integration of place-sensitivity and improvement of everyday landscapes through affective, behavioral and cognitive responses of urban professionals and community members involved in the project. Findings of the study show that place attachment, sense of community and community participation in regeneration can help in re-creating meaningful places. Lessons from Ami-dong offer insights on ways to strengthen people–people and people–place relationships through design and planning processes in a declining context with an aging population.