This study presents the development and psychometric validation of an urban heritage sociocultural impact assessment (UHSCIA) scale to evaluate the impact of urban development projects on the sociocultural fabric of historic urban precincts. The scale was designed to facilitate a heritage-led approach to urban development, ensuring the preservation and enhancement of urban heritage assets. The study adopts a mixed-method grounded theory to prepare the item pool and construct a framework. The psychometric properties of the scale were rigorously examined through confirmatory factor analysis. The results demonstrate the scale’s reliability and validity, affirming its potential as a valuable tool for decision-makers and practitioners involved in heritage-sensitive urban development. The study concludes by discussing the implications of the UHSCIA scale and its scope for future applications.