This study aims to explore the association between community‐based social capital, namely clan identity and sense of community (SOC), and perceived neighbourhood walkability (PNW) in relation to depressive symptoms among rural older adults in urbanisation. A sample of 489 older adults in an urbanising county of Western China participated and moderated mediation analysis was utilised. PNW was negatively associated with depressive symptoms, and SOC mediated the focal association. Moreover, clan identity was found as a moderator of the direct effect of PNW on depressive symptoms as well as on the indirect effect of the association through SOC. Specifically, the negative role of higher PNW on depressive symptoms was observed for older adults without clan identity. Also, clan identity significantly buffered the positive association between PNW and SOC. The study revealed the significant role of community‐based social capital in the association between PNW and depressive symptoms among the elderly experiencing urbanisation.