Noida is the satellite city of Delhi and a hub for manufacturing industries, with a substantial workforce primarily composed of industrial workers, making up 29.47 percent of the total workforce. However, the current housing options available for industrial workers within the city are mostly unplanned settlements like urban villages, squatter settlements, unauthorized colonies, etc. In order to achieve sustainability in industrial workers’ housing, this study examines the transforming impact of community empowerment and participation. It goes beyond traditional housing provision, focusing on broader sustainability dimensions such as social, economic, and cultural well-being. The research employs a mixed-method approach, combining qualitative and quantitative techniques. It analyses existing housing projects that actively involve communities in decision-making, planning, and management. Additionally, surveys and interviews gather insights from workers and stakeholders in Noida for identifying the issues related to parameters of community empowerment and participation in the sustainability of industrial workers housing. The study reveals that community-based housing delivery (CBHD) significantly enhances housing sustainability. Involving industrial workers in the process fosters social cohesion, responsible environmental practices, and economic resilience. This participation leads to more sustainable living environments, highlighting the value of community-driven initiatives. This research offers a fresh perspective by emphasizing the transformative potential of community engagement in industrial worker housing. It expands the understanding of sustainability by including the broader aspects of community involvement, enriching the discourse on housing and community development. The study provides practical insights for policymakers, urban planners, and housing stakeholders. It underscores the importance of involving industrial workers in shaping their housing environments. These insights are invaluable for promoting holistic sustainability in housing solutions and fostering inclusive living environments for industrial workers in other developing countries.