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This article examines the intersection of ritual practices and urban transformation in Shanghai, specifically focusing on the sacrificial burning of paper offerings by residents of vanishing lilong neighbourhoods. It underscores the significance of fire and rituals as transformative elements in spiritual and communal life, highlighting their role in connecting the living with ancestors and fostering community bonds. Despite modern regulations limiting these practices, rituals continue, albeit in more discreet forms. The study argues that the selective preservation and commercialization of Shanghai’s history prioritize certain narratives, erasing the lived experiences of ordinary people. By exploring the social and symbolic meanings of these rituals, the article suggests that they serve as farewells to a disappearing way of life, reflecting broader themes of loss, memory and identity amidst rapid urban change. Partly drawing on personal experiences, the author discusses the notion of spiritual drift, where urban transformation results in dislocation and necessitates new forms of community. Ultimately, the research highlights the importance of maintaining a living culture that connects people and remains relevant to contemporary life, rather than merely preserving the past as a static constellation of symbols.