The literature on gentrification through urban regeneration tends to overlook its most alarming effect, displacement, particularly in low-income neighbourhoods and in the aftermath of the regeneration practice. The paper aims to analyse in depth the multiple facets of displacement and actors' perceptions of it, in the context of a regeneration project involving informal housing and low-income residents in Ayazma, Istanbul. Through participant observation and in-depth interviews with the local municipality, the central government housing provider, non-governmental organisations and residents, the study determined that the displacement of residents can happen in multiple ways and on different timelines. The results show that although the formal actors recognised to an extent that displacement resulted in severe challenges for the local community, they viewed it as an intrinsic and/or inevitable pre-condition of successful regeneration schemes. On the contrary, the displaced residents suffered the consequences and felt increasingly neglected and antagonised by the government over the course of the project, leading to deeper issues of trust and isolation. The findings of the study can help the policymakers and practitioners of urban planning and related fields view gentrification and displacement in a new light and consider its various causes and effects.