Urban stream restoration projects can improve water quality, wildlife habitats, urban landscape, outdoor recreation spaces, and urban microclimate. The objectives of this research were to investigate temperature cooling effect of urban streams by using satellite imagery, to evaluate environmental variables related to stream cooling effect, and to estimate the cooling effect of the Cheonggye stream restoration project of Seoul, Korea. Findings of this research can be summarized as follows. First, a method of estimating temperature distribution around urban streams by using satellite imagery was developed. Scatter plots of distance from stream edges and average temperature obtained through multiple buffering were used for the estimation. Second, urban temperature cooling effect of streams was estimated by comparing background temperature and temperature of each buffer zone. Third, environmental factors affecting stream cooling effect were also identified. Fourth, the temperature cooling effect of the restoration project was estimated based on three scenarios. An estimated cooling effect based on the average cooling effect of existing tributaries showed the most significant effect; $2.0^{circ}C$ lower than the present level at the edge of the renovated stream. It was estimated that the temperature of the same area would be $1.4^{circ}C$ cooler than the present level if the cooling effect of the Yangjaechun was used as the bench mark But the effect would be $1.2^{circ}C$ lower than the present level if environmental variables related to the temperature cooling effect of urban streams were used as the bench mark.