The concept of “city branding” emerged from various influences. It has shifted from focusing mainly on attracting people and businesses to involving more members of the community in a shared and collaborative way. This paradigm has undergone a significant transformation with the emergence of a user-centric approach, emphasizing co-creation and expanding the focus to encompass a broader spectrum of stakeholders. Thus, it redefined city branding as a more inclusive and collaborative process. This paper provides an extensive narrative literature review on the progression of participatory city branding (PCB). The study highlights a significant paradigm shift in citizen involvement within city branding, showing the movement from perceiving residents as passive consumers to recognizing them as proactive co-creators of place identity. This evolution is framed within broader theoretical frameworks, such as stakeholder theory and co-creation. This work provides a deeper understanding of the intricacies, challenges, and opportunities of PCB. It contributes to the growing literature on participatory approaches to place branding, offering crucial insights for policymakers, practitioners, and academics. By addressing the historical development, theoretical frameworks, and practical consequences of PCB. This paper stresses the necessity for inclusive, authentic, and resonant city brand identities in an increasingly competitive global environment.