This paper aims to contribute tolearning on community engagement and community drivendevelopment (CDD) in urban areas. Specifically, the reviewdescribes the World Bank’s use of participatory and CDDapproaches in urban areas between 2003 and 2013; identifiesthe challenges of using participatory and CDD approaches inthe urban context; assesses lessons from the application ofCDD in urban areas through case studies; and makesrecommendations for a way forward in terms of operationalapproaches and further research to improve the applicationof CDD in cities. In conducting the study, the team engagedcolleagues from social and urban development, and otherrelevant sectors in order to leverage cross-sectoralcollaboration. The paper aims to provide a useful startingpoint for dialogue and collaboration to contribute tosustainable and inclusive cities. The findings of the revieware targeted to task team leaders and national and localgovernment officials who are interested in initiating,expanding, or scaling up projects with a participatoryapproach in urban areas.