Living Labs (LLs) are collaborative spaces where stakeholders are offered the opportunity to address relevant challenges. In the context of city logistics, LLs promote knowledge exchange, innovation, and learning among stakeholders, while also focusing on understanding how different UFT solutions are perceived by stakeholders, and how these perceptions influence solution adoption. In this direction, the aim of this study is twofold; first to provide a framework for establishing city logistics LLs, and second, to validate this framework via showcasing the challenges and barriers of LLs of different size, purpose and scope, to elicit requirements and foster the actual implementation of the envisaged solutions and their scale up. The research contributes to the advancement of sustainable urban logistics practices to enhance the efficiency, sustainability, and resilience of Urban Freight Transport (UFT) systems.