The physical, economic, socio-economic, demographic, social and cultural growth and development of cities for centuries has been accepted as a natural process. However, we also see that there is a reverse phenomenon of urban growth, which is caused by various factors. This phenomenon, which is named as 'Urban Shrinkage', is not new and appears as a multidimensional process. The phenomenon called 'Shrinking Cities' has been experienced throughout history in the development process of cities but has gained prominence in this century. Since the Chicago School, it has been accepted as a natural process that the urban transformation that occurs with the development and shrinkage of cities and city centers stems from a life cycle. Studies analyzing the causes and occurrences of this, especially in the USA, show that some cities are in an inevitable shrinkage. Different views have been put forward regarding the reasons for the shrinking of cities, which is a multidimensional process. The two main factors with which the views are agreed are the change in the demographic structure and the industrial transformation. The settlement of the population in the suburbs has caused the emptying of the residential settlements in the city centers and thus the areas that have lost their vitality to appear as voids. Like large areas that appear as gaps in city centers, they occur because of industrial transformation due to reasons such as technological developments and environmental factors. European cities have already experienced the 'shrinkage' processes compared to the cities in the world and have already started working on developing solution proposals. The methodology of the study is based on case analysis and literature review. Shrinking cities in Europe were evaluated with descriptive analysis within the scope of data such as history, demography, physical location, relationship with water, commercial structure. In this study, 'suburbanization' and 'industrial transformation', which are the physical and spatial reflections of two factors that are effective in shrinking cities, are discussed over the city of Liverpool. The economic development and urban transformation process that enabled Liverpool to get out of the scope of shrinking cities were examined and the parameters that played a role in its renewal were presented in detail. The investments made should be respectful of the historical environment, respond to the needs of the city and its inhabitants, consider public benefit, and become a world-class attraction are the outstanding parameters of all.