Verb
reconcile - To bring two or more people or groups into a state of harmony or understanding after a disagreement or conflict.

After a long argument, they managed to reconcile their differences and rebuild their relationship, realizing how much they valued each other.
rehabilitate - To renovate or repair something, such as a building, facility, person, or environment, to make it more usable or up to current standards.

The city invested in programs to rehabilitate the old industrial district, transforming it into a vibrant area for businesses and residents.