Participatory democracy, unlike the representative model, emphasizes the direct involvement of citizens in decision-making processes, as a form of expanding the democratic space and strengthening political accountability. It is based on the assumption that sovereignty is not exhausted in the electoral act, but is constantly reaffirmed through various forms of citizen participation as mechanisms of direct democracy. Innovative democratic mechanisms, such as citizens’ initiatives, forums, participatory budgets or digital consultation platforms, ensure equal access for all citizens and guarantee fair and transparent procedures. The extent to which they are based on the principles of legality, equality and procedural fairness indicates their ability to ensure genuine democratization of institutions and decision-making processes. In this way, they not only ensure respect for fundamental democratic values in society, but also contribute to their strengthening and promotion. The paper contributes to the debate on the importance and the challenges of realizing participatory democracy and innovative democratic mechanisms. In this aspect, in Republic of North Macedonia, some mechanisms for citizen participation in decision-making at the local level are provided by the legal regulation, although their application is relative. On the other hand, some mechanisms are frequently applied, despite being provided for only in the statutes of the municipalities. In this regard, there is a need for legal regulation of certain democratic mechanisms for citizen participation in decision-making at the local level, which will contribute to the advancement of democratic decision-making processes at the local level.