Unplanned urbanization in South Asia has accelerated the loss of natural ecosystems, creating new vulnerabilities to climate change. In Sylhet, Bangladesh, the filling and encroachment of canals, combined with poor waste management, have severely disrupted ecological functions. Once vital for drainage, biodiversity, and community livelihoods, urban canals are now sites of pollution, stagnation, and flood risk. This study investigates the ecological and social dimensions of canal degradation while exploring community-driven approaches to ecosystem restoration and climate resilience. A mixed-methods approach was applied, combining GIS-based land-use analysis with household surveys (n = 200) and stakeholder interviews. Findings show that the disappearance of interconnected water channels has intensified flooding, reduced groundwater recharge, and undermined urban biodiversity. Marginalized communities, often residing near these degraded canals, face disproportionate impacts, including health risks and loss of income opportunities. However, local adaptation practices such as participatory canal cleaning, urban gardening, and small-scale waste recycling demonstrate promising pathways for ecological regeneration and social empowerment. The study argues that canal restoration is not merely an environmental issue but also a governance and justice concern, requiring collaboration between residents, municipal authorities, and civil society. Strengthening environmental literacy, integrating digital monitoring tools, and embedding community participation in urban planning can help restore ecological services while fostering equitable resilience. By situating Sylhet within broader debates on climate adaptation and circular urban economies, this research underscores the urgent need to move “beyond concrete” and reimagine cities as living systems where ecosystems and people thrive together.