This study examines the integration of smart urban regeneration indicators to address the unique challenges of Benghazi, Libya. By aligning international smart city frameworks with the city’s local socio-political, economic, and cultural contexts, the research highlights the potential for technology-driven, community-focused, and environmentally sustainable urban renewal. Using a mixed-methods approach—including a literature review, expert interviews, and resident surveys—the study develops a tailored set of indicators to guide sustainable urban regeneration in Benghazi. The findings emphasize the importance of comprehensive strategies incorporating governance, environmental sustainability, mobility, and social inclusivity, supported by emerging technologies such as IoT and ICT. These indicators enable data-driven decision-making, monitor progress, and foster stakeholder collaboration. Recommendations include piloting small-scale projects, benefiting from technological innovations, and prioritizing community engagement to enhance governance transparency, infrastructure development, and environmental resilience. This research provides actionable insights and practical tools for creating resilient and inclusive urban environments, offering a roadmap for Benghazi and similar cities facing urbanization and environmental challenges.