The postsocialist process of urban restructuring came with important spatial, social, and economic consequences. This triggered important transformations that remain palpable in the everyday texture of urban life, spatial patterns, and even the internal structures of the city. Every urban settlement was bound to contribute to the state socialist industry so that postsocialist urban transformations also included multiple aspects of dereliction and ruination of the socialist industrial assets. Threatening postsocialist urban formations and sustainability, the most common feature is collective neglect at national, regional, and local scales. The transition from state-socialist forms of production to the current market-based system poses many difficulties. This article specifically investigates the problems of urban industrial ruins in Lugoj—which are typical for medium-sized postsocialist municipalities in Romania. The research draws on qualitative data gathered by the authors through semi-structured interviews, personal communication, and oral histories and continuous infield observation (2012–2019). The findings unveil the production and the reproduction of abandoned spaces in Romanian urban settlements in the absence of specific regeneration programs and policies on urban redevelopment and marginalized areas. The analysis reveals that urban ruins harm the quality of life in local communities, damaging both the urban landscape and local sustainability. Further actions for local urban regeneration are urgently needed.