The characteristics of the urban heat island effect and the climate change in Shanghai and its possible mechanism are analyzed based on monthly meteorological data from 1961 to 1997 at 16 stations in Shanghai and its adjacent areas. The results indicate that Shanghai City has the characteristics of a heat island of air temperature and maximum and minimum air temperature, a cold island of surface soil temperature, a weak rainy island of precipitation, and a turbid island of minimum visibility and aerosols, with centers at or near Longhua station (the urban station of Shanghai). Besides theses, the characteristics of a cloudy island and sunshine duration island are also obvious, but their centers are located in the southern part of the urban area and in the southern suburbs. A linear trend analysis suggests that all of the above urban effects intensified from 1961 to 1997. So far as the heat island effect is concerned, the heat island index (difference of annual temperature between Longhua and Songjiang stations) strengthens (weakens) as the economic development increases (decreases). The authors suggest that the heating increase caused by increasing energy consumption due to economic development is a main factor in controlling the climate change of Shanghai besides natural factors. On the other hand, increasing pollution aerosols contribute to the enhancement of the turbid island and cooling. On the whole, the heating effect caused by increasing energy consumption is stronger than the cooling effect caused by the turbid island and pollution aerosols.