Citizen participation in the planning and decision-making process in the European post-socialist context is much debated. Still, the involvement of excluded communities in the urban planning process remains understudied. This paper presents and discusses the application of an innovative participatory approach designed to ensure active involvement of an excluded ethnic minority, the Roma community, in the process of formulating and adopting land-use plans for informal settlements in Serbia. By analysing the development of land-use plans in 11 municipalities, we observe that the applied participatory approach enhanced the inhabitants’ active participation and helped build consensus on the planned solution between the key actors. Findings also suggested that further work with citizens, capacity building of planners and administration, and secured financial mechanisms are needed to move citizen participation in urban planning beyond the limited statutory requirements.