Urban green transformation constitutes a critical pathway for advancing urban equity, environmental sustainability, and human well-being, wherein residents’ community participation emerges as a fundamental determinant. However, Prior research on green-sustainable community development has predominantly emphasized theoretical frameworks, with limited empirical investigations. This study investigates the role of green-sustainable community construction in advancing sustainable urban development through a comparative analysis of community participation and subjective well-being between green-sustainable and non-green sustainable communities, using a sample of 2276 adults residing in 29 communities (19 green-sustainable communities and 10 non-green sustainable communities) in Shenzhen, China. The findings emphasize the environmental and social importance of green-sustainable community construction. Residents in green-sustainable communities report higher levels of community participation and subjective well-being compared to those in non-green communities. Notably, green-sustainable communities strengthen the positive relationship between community participation and subjective well-being. Nevertheless, fostering resident engagement in community governance and adoption of green lifestyles remains a critical challenge for sustainable urban development.