Shanghai is the biggest metropolis in China, and its local temperature change is affected not only by global warming but also by urbanization. Integrating the Mann-Kendall test, EMD (Empirical Mode Decomposition), Cross Wavelet Analysis and statistical methods, we studied the response of the local temperature change in Shanghai to global warming and urbanization. The results indicate that the local temperature at Shanghai present a significant warming trend under the background of global warming over the past 135 years. The local temperature at Shanghai displays 2-year, 6-year, 15-year, 23-year and 68-year periodic fluctuation, whereas global temperature shows 4-year, 9-year, 15-year, 23-year and 68-year cyclic variation. Although the two cycles are not exactly the same, they show some comparability. Urbanization facilitated the warming process of Shanghai. In the most recent 50 years, temperature difference between urban and suburban Shanghai has increased nearly 0.4 °C. The related indicators of urban development, such as population, built-up area, Gross Domestic Product (GDP), energy consumption and number of vehicles show significantly positive correlation with the temperature difference between urban and suburban area. In addition, the frequency of extreme high temperature has become higher, whereas the frequency of extreme low temperature has become lower over the most recent 55 years.