This paper examines to what extent, and for whom, different geographical characteristics affect the levels of local social engagement, satisfaction, and embeddedness in the Netherlands. We employ a uniquely detailed dataset of individuals in Dutch neighbourhoods and municipalities, which is examined using a multilevel hierarchical model with spatial interaction effects. The analysis shows that living in a neighbourhood with a high ethnic concentration and low economic development has negative consequences for actual engagement, satisfaction, and embeddedness. However, this effect is more relevant for natives than for immigrants (ie, Turks, Moroccans, Surinamese, and Antilleans). In addition, we4 find no evidence that the relationship between locality and engagement, satisfaction, and embeddedness varies between first-generation and second-generation immigrants.