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In this article I examine grassroots responses to state-directed urban renewal in two poor neighborhoods in Istanbul. Through detailed analysis of resident perspectives and urban association tactics, I explore various factors that shape the trajectories of resistance to urban renewal, including solidarity networks, levels of participation and trust in local neighborhood associations, strength of neighborhood identity, extra-local support, and the traditions and channels of negotiation with state actors. I argue that these factors are articulated by a distinct “politics of compensation”-a term that I borrow from Ananya Roy-that is particular to the contemporary neoliberal condition. I find that grassroots mobilizations in Istanbul do not necessarily operate in opposition to neoliberalism; in fact, many struggles remain within the conceptual space of neoliberalism and its cost-benefit calculations. These findings contribute to the emerging literature on struggles against urban renewal in the global south