In this report, ESCAP explores the future of urbanization in Asia and the Pacific, focusing on the dynamic shifts in the region’s urban landscape. It highlights the region’s demographic transformations, including population ageing, and the persistent challenges of urban poverty and inequality. The analysis covers urban areas of all sizes, from megacities to smaller towns, and emphasizes the need for innovative governance models and sustainable development strategies to meet the region’s unique urban needs. Key vulnerabilities, such as economic volatility, climate risks and social disparities, are addressed, as are opportunities for cities to serve as testing grounds for new solutions. ESCAP underscores the critical role of regional cooperation in overcoming the challenges faced by cities and identifies shared approaches to localizing global goals, enhancing multilevel climate action and fostering inclusive urban growth. It also emphasizes the importance of data, digital transformation and innovative financing in supporting sustainable urban development and ensuring cities are equipped to navigate the complex future ahead.