Participatory arts have been increasingly recognized as an effective approach for promoting community empowerment by engaging local residents as active contributors to artistic creation, cultural governance, and community development. Despite growing implementation of such initiatives in Indonesia, comparative evidence on how community empowerment differs between urban and rural contexts remains limited. This study examines the characteristics, implementation processes, empowerment outcomes, and sustainability of participatory arts programs in urban and rural Indonesia, identifying the contextual factors shaping their effectiveness. A comparative qualitative literature review was conducted using structured focused comparison of secondary data published mainly between 2015–2025, integrating peer-reviewed articles, government publications, and institutional reports. A standardized evidence matrix guided extraction of program characteristics, participation levels, and empowerment outcomes, analyzed through narrative synthesis, thematic analysis, and cross-case comparison within a framework combining Empowerment Theory, Social Capital Theory, Cultural Democracy, Creative Placemaking, and Community Resilience. Findings show urban initiatives benefit from stronger institutional partnerships, diversified funding, and bridging/linking social capital, while rural initiatives demonstrate stronger community ownership, cultural continuity, and bonding social capital. Across both contexts, meaningful participation through co-creation and shared decision-making generated stronger multidimensional empowerment than mere consultation or attendance. Institutional collaboration, participatory governance, and diversified funding support sustainability, while tokenism and power asymmetries remain key challenges. The study concludes that empowerment depends more on participation quality, ownership, and institutional support than geographical location, offering a multidimensional evaluative model for policymakers and practitioners.