This paper introduces Participatory Design, a narrative-based participatory framework developed to address persistent limitations in the design of Ambient Assisted Living (AAL) technologies. While AAL systems aim to support autonomy and well-being in aging populations, many fail due to limited user engagement, discontinuous usage, and lack of emotional resonance. Current participatory approaches often rely on abstract personas or partial involvement of older adults, resulting in a disconnect between technological solutions and lived experiences. Participatory responds to this gap by integrating biographical storytelling and co-design, emphasizing narrative voice, radical inclusion, and empathic sensemaking. The framework is grounded in interdisciplinary contributions from HCI, narrative gerontology, semiotics, and design ethics. It proposes a flexible three-phase model, narrative mapping, participatory sensemaking, and narrative return, enabling the co-creation of technologies that reflect users’ memories, values, and social contexts. Particularly suited for AAL, the framework supports inclusive design processes involving older adults and informal caregivers, fostering agency and cultural alignment. Through concrete tools and principles, Participatory shifts the focus from data to meaning, from monitoring to listening, and from functional efficacy to relational significance. This paper details the framework’s theoretical foundations and operational phases and outlines its future empirical validation in real-world co-design settings.