This study focuses on assessing collaborative governance from the perspective of power dynamics in a disadvantaged neighbourhood in southern Spain: Las Palmeras. Increasing global urbanisation in recent decades has exacerbated problems of segregation within cities, posing a major challenge to achieving healthy urban environments for harmonious coexistence. Public policies have struggled to address this challenge, particularly following the adoption of the United Nations’ 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs), which have underlined the importance of fostering inclusiveness and sustainability in urban environments. In this context, collaborative governance has emerged as a prominent strategy for democratising the implementation of public policies in urban contexts. However, the efficacy of collaborative governance is hampered by the dynamics of power relations, which limits its effectiveness. The aim of this study is understanding how these dynamics mediate collaborative processes in urban regeneration contexts, an area little addressed so far. Through a case study and the systematisation of experiences, the study proposes strategic recommendations for managing these dynamics within collaborative governance. The insights drawn from this study can serve as a basis for better addressing urban challenges, thus fostering greater inclusiveness and sustainability in urban areas as well as offering valid lines for future research in the field.