Resident engagement is highlighted as a crucial aspect that directly impacts the residents’ well-being of life in the process of sponge-style old community renewal (SOCR). However, there is a lack of in-depth study on exploring the classification of resident engagement clusters in the SOCR and developing a comprehensive evaluation system to measure this engagement. Therefore, this paper categorizes resident engagement into distinct clusters and develops an evaluation method for quantifying resident engagement in the SOCR. First, this study identified seven types of engagement clusters in the SOCR drawing from educational psychology and Arnstein’s citizen engagement ladder theory. Second, an evaluation indicator system with 5 primary indicators and 21 secondary indicators was developed through a literature review and expert interviews. Third, a hybrid evaluation method combining the Analytic Network Process (ANP) and Preference Ranking Organization Method for Enrichment Evaluations II (PROMETHEE II) was established to effectively quantify resident engagement in the SOCR. Finally, 16 typical communities from five Chinese cities were selected as study areas to examine resident engagement in the SOCR. The results demonstrated that the full engagement cluster achieved the highest scores at the individual level, while the non-engagement cluster recorded the lowest scores. At the city level, Shanghai attained the highest overall engagement score, whereas Chizhou recorded the lowest. Several strategies were proposed to improve resident engagement in the SOCR. This study not only contributes to the body of knowledge on resident engagement in the SOCR but also provides guidance for fostering resident engagement in sponge city construction.