The present study addresses the growing need for effective local sustainable development strategies by situating its inquiry within the interdisciplinary context of land system sciences, as well as the global framework of the United Nations Sustainable Development Goals. The research hypothesis is that the community approach, when integrated with institutional support, results in more legitimate, adaptive, and sustainable land system outcomes than those of the conventional top-down models. This research seeks to assess the transformative capacity of community-led approaches in influencing land use planning, resource management, and policy design. This study uses qualitative case studies, participatory action research, and a comparative policy analysis to systematically investigate how community-driven initiatives contribute to more resilient and adaptive socioeconomic systems. Data were collected from various localities actively engaged in participatory governance, ensuring robust representation of social, cultural, and ecological contexts. The findings indicate that community-led strategies not only foster social cohesion and economic diversification but also enhance the adaptive capacity for land–climate interactions. These strategies are more responsive and more inclusive than traditional governance models. A further analysis reveals that integrating local knowledge and participatory decision-making with institutional support produces more legitimate and sustainable outcomes. This study concludes that dynamic, context-sensitive frameworks that empower communities while leveraging institutional resources are necessary. This study provides practical guidance to policymakers and stakeholders seeking to advance sustainable and equitable land system transformations.