The article explores the phenomenon of participatory democracy and its significance in the processes of public governance and the democratic legitimization of power. It reveals the essence of participatory democracy as a component of the modern model of democratic development that ensures the direct involvement of citizens in decision-making, policy formation, and oversight of governmental activities. The study analyzes the main theoretical approaches to understanding the nature of participatory democracy and outlines its key mechanisms of implementation in the Ukrainian context. Particular attention is paid to the legislative framework regulating citizen participation in Ukraine. It is emphasized that the legal institutionalization of participatory mechanisms is a crucial factor in strengthening public trust and enhancing transparency in governance. At the same time, the study notes that excessive state regulation may limit the initiative of local communities. Therefore, local self-government bodies should be granted broader autonomy in determining and applying participatory instruments suitable for their specific contexts. The article examines the most common forms of participatory democracy practiced in Ukraine, including electronic petitions, public hearings, and participatory budgeting. The role of local community statutes—often referred to as “local constitutions”—is highlighted as a key element in defining the rules of interaction between authorities and residents. The authors conclude that the effectiveness of participatory democracy depends on the quality of local law-making, the level of public trust, the institutional capacity of self-government bodies, and the activity of civil society organizations.