<p>Living Labs are increasingly promoted with an aim to support sustainability transitions or transformations. In this article we explore the transformative potential of Living Labs, by interactively assessing three Living Labs for biodiversity recovery in the Netherlands with the aid of an existing reflexive assessment framework. Potentially transformative aspects of Living Labs include their local grounding and their focus on change, their diverse composition and embeddedness in larger networks, the building of bridging social capital, forms of experimentation and knowledge coproduction, their collaborative mode of operation, and actionable outputs. On the basis of this assessment, we propose that the transformative potential of Living Labs lies in their inherent collaborative mode of working, their focus on shifting practices, and their ability to contribute to shifting views through experimentation and learning. However, their transformative potential is also limited because they are less able to challenge, let alone disrupt. In addition, they have a limited focus on shifting structures. We propose that the nature of Living Labs will inherently limit their transformative potential. We conclude with recommendations to enhance the transformative potential of Living Labs in a network of networks. For example, Living Labs may raise their transformative ambitions, and more carefully consider their composition to include stakeholders that can help to achieve change. At the same time, we recommend to not expect too much of Living Labs, but to put complementary transformative strategies in place.</p>