The UTOPIZE project is a response to the pressing urban, ecological, and social challenges reshaping Europe, driven by climate change, social exclusion, energy poverty, aging populations, and other complex issues. Aligned with the New European Bauhaus (NEB) principles of sustainability, inclusivity, and aesthetics, UTOPIZE proposes a participatory framework that involves communities in the co-design and governance of public spaces across urban, peri-urban, and rural environments. The project is structured around the concept of UTOPIA, not as a static ideal but as an evolving process of community engagement. Through UTOPIA Labs, citizens co-create and transform their neighbourhoods, utilizing digital tools like Extended Reality (XR) and Geographic Information Systems (GIS) to enhance real-time urban planning and decision-making. These labs foster inclusivity by involving marginalized communities such as ethnic minorities, low-income populations, people with disabilities, and others at risk of exclusion. UTOPIZE's approach is deeply participatory, involving communities at every stage from local activation events to co-design workshops. The project operates across three demonstrator countries—Portugal, Italy, and Sweden—before expanding to six additional countries through a Twinning Program, ensuring scalability and adaptability. UTOPIZE aims to create resilient, sustainable, and culturally relevant public spaces that strengthen social cohesion and reflect the local identity and history of each neighbourhood. The project also integrates Nature-Based Solutions (NBS) and sustainable materials into the design and transformation of public spaces, contributing to environmental resilience and climate neutrality goals. By bringing together experts from multiple disciplines—architecture, engineering, social sciences, and the arts—UTOPIZE ensures a holistic and transdisciplinary approach to urban transformation. UTOPIZE’s comprehensive monitoring and evaluation framework.