Abstract: To address the challenges of fragmented urban fabric and lack of vitality faced by industrial megastructures in urban renewal， this study proposes the adaptive renewal concept of the “internalized neighborhood”. The research posits that the regeneration of such spaces should transcend singular modifications to the building structure itself. Instead， it should focus on systematically “internalizing” the spatial logic of an urban neighborhood—including its human-scale proportions， functional hybridity， public circulation networks， and permeable interfaces—into the building interior. This approach facilitates a fundamental transformation from an isolated megastructure into a vibrant urban node. The paper systematically constructs a four-dimensional spatial restructuring framework comprising “Scale Transformation， Functional Hybridity， Circulation Reorganization， and Interface Blurring”. Using the renovation of Building 8 at Shanghai Huayi Wanchuang Park as a case study， it elaborates on how specific design techniques—namely “disaggregation”， “multi-level circulation networks”， and a “three-dimensional park”—synergistically interact to convert an industrial plant into an “internalized neighborhood” characterized by diverse functions， rich circulation paths， and seamless integration between interior and exterior. The study demonstrates that this strategy effectively mends the urban fabric， enhances spatial quality and public value， offering a new theoretical perspective and practical pathway for the adaptive regeneration of industrial heritage.