This study examines the assessment and enhancement of urban quality of life (UQoL) within heritage areas, focusing on aligning development and upgrading strategies with heritage conservation and management. A comprehensive matrix was developed encompassing five dimensions- urban, mobility, socio-cultural, environmental, and economic-comprising 30 indicators such as housing, facilities, public spaces, income, and community participation. The theoretical framework was established through an extensive literature review and refined by analysing international heritage cities to ensure the matrix’s robustness and applicability The matrix was applied to the Religious Complex Area in Al-Fustat, chosen for its historical richness, coexistence of different heritage monuments and dense housing, and strategic role in development plans. The study hypothesises that heritage management policies and urban quality of life are mutually interrelated, each influencing and reflecting the other. A mixed-methods approach was employed, integrating fieldwork with quantitative and qualitative tools, including surveys conducted with residents and expert respondents. The findings support both the theoretical framework and its practical application. They reveal notable strengths and weaknesses in current efforts; for instance, the socio-cultural dimension achieved the highest scores, reflecting strong community attachment and identity, while the environmental dimension scored lowest, indicating concerns and the need for targeted interventions. Moreover, researchers rated the urban dimension higher, whereas residents rated mobility slightly higher, revealing perceptual differences between technical assessment and lived experience. Based on these findings, the study proposes recommendations to guide balanced development in historic districts, aiming to enhance residents’ well-being while preserving cultural identity.