The cultural heritage conservation approach evolved from preservation of monumental structures, to preservation of historic fabric and living within existing texture. In case of conservation-oriented practices in historic settlements proposed functions for settlements to continue to live are generally tourism-oriented. When tourism-oriented implementations are examined, it is seen that the life in historic texture has been gentrified. In this context, this thesis discusses the relationship between cultural tourism and loss of place identity through Saburhane district in Muğla city center. A survey was conducted with the inhabitants of the district to understand the identity of the Saburhane and interviews were conducted with the authorized persons to understand the viewpoints of Muğla Metropolitan Municipality and Menteşe Municipality on the conservation of historic texture and existing lifestyle in the district. The Saburhane Street Rehabilitation Project has been examined in terms of the method and process followed. The surveys showed that Saburhane has continued to be alive for a long time, the residents of the neighborhood has been observed to be highly attached on the settlement. However, the most important problems identified are the uncared physical texture, the inability of the inhabitants to maintain their buildings due to low income levels and the physical condition of the buildings getting worse to live. Despite the participatory approach being followed in the Saburhane Street Rehabilitation Project, cultural tourism demands of the Municipalities requires preventions within new proposals to be developed in order to minimize the risk of loss of place identity.