Cities have begun to gain increasing importance in both national and international competition as both attractive living spaces and innovative and creative production places. The increasing importance of cities has made increasing economic growth, per capita income, number of employees, security, mobility and welfare a priority goal in the urban area. Achieving these goals in urban competition requires the transfer of sufficient authority and resources from the central government to local governments. In other words, with fiscal decentralization, both effective use of resources will be provided and a solution to the problem of inefficiency in the public economy will be produced. Because with fiscal decentralization, it will also be possible to reduce the development differences among cities in addition to increasing the urban competitiveness. In this study, it is aimed to measure the relationship between fiscal decentralization and urban competitiveness. For this purpose, a wide literature review was conducted, and then using the panel data analysis method, the impact of fiscal decentralization in Turkey on urban competitiveness was statistically tested. In the panel data model created, the fiscal decentralization rates of the cities measured in terms of expenditures were used as the independent variable, and the urban competitiveness index was used as the dependent variable. As a result of the research, the impact of fiscal decentralization on urban competitiveness was found to be positive and significant.