The purpose of this study was to analyze the impact on settlement consciousness from the physical change and community development accomplished by the regeneration of a park and green space in a deteriorated residential area. The case study was a park that altered the landscape of a ruined hill in Busan. Two field investigations were performed to determine the condition of before and after the making of the park. A survey was also conducted, the frequency and means were calculated, and multiple regression analysis was performed. The results show, first, the physical regeneration increased the vitality of the place and assisted in the improvement of the community, particularly in satisfaction and attachment to residence, and in the settlement consciousness. Second, the identity of the resident was improved by the regeneration, and they approved of the transformation of an abandoned space into a usable place. Third, the settlement consciousness was significantly reinforced by making the physical environment into valuable space and improving the image of the residential area.