This study examines the transformative potential of installation art as an experimental tool for urban spatial production, focusing on its role in rapidly developing and changing cities. Drawing on situationist theory of spatial production, the research explores how installations construct ‘situations’ that integrate material environments with human behaviour, fostering critical awareness, experimental attitudes and habit-breaking practices. Through the analysis of four case studies in İstanbul—two by artists and two by architects—it highlights how installations address urban challenges such as environmental degradation, social inequality and rigid spatial norms through creative interventions and participatory interactions. The findings show that installations act as catalysts for spatial and social change by inspiring playful creativity and disrupting habitual behaviour. Their temporary, site-specific and interactive nature provides a flexible framework for addressing contemporary urban issues, making them powerful tools for promoting inventive and inclusive urban environments. This study contributes to the broader discourse on the role of installation art in urban environments, offering insights into how experimental practices can address contemporary challenges in rapidly changing cities. Future studies could further investigate the long-term effects of installations and their applicability in different urban contexts.