Community organizing is an effective approach to face social, economic, and racial injustice at the local level. However, since the 1970s, neoliberal policies, growing social divisions, and political disengagement have challenged community organizing. This study explores the use of critical adult education to address local organizing challenges with diverse and socially excluded communities in Israel. Building on a case of a local partnership to promote inclusive urban development, we analyzed data from interviews, focus groups, and participant observations conducted with activists and paid professionals. The findings suggest that critical education was instrumental in organizing across diversities through three processes: transposing knowledge, disrupting power hierarchies, and negotiating diversity. Critical education was perceived as empowering for activists at the individual‐family level and promote change at the local level. However, at the national policy level, limited changes were achieved. The advantages and limitations of critical education for local organizing are discussed.