Today's world is characterized by unprecedented urban growth. Such development presents a range of opportunities and various stresses to the urban population. Proper housing has become a precondition to overcome poverty and vulnerability of the urban poor, and their participation has been one of the most important instruments in sustaining positive change in their living conditions. On one hand participatory development in informal urban settlements as an approach is challenging, on the other hand overused participation in development practice faces criticism for lack of proper analysis, insight and understanding. This thesis aims to study preconditions for and implications of slum residents' participation in slum upgrading and improvement programmes in the fourth biggest Indian metropolis - Chennai. Challenges for participation are analysed with respect to sustaining or to developing outcomes of upgrading programmes in the study area. The main objective of the field research in Chennai slums was to assess threats and opportunities for participatory development and the paper identifies some areas of possible difficulties for community participation in the context of slum dwellers' lives. The analysis further provides an outline of recommendations to be taken into consideration in designing a programme or a project.Today's world is characterized by unprecedented urban growth. Such development presents a range of opportunities and various stresses to the urban population. Proper housing has become a precondition to overcome poverty and vulnerability of the urban poor, and their participation has been one of the most important instruments in sustaining positive change in their living conditions. On one hand participatory development in informal urban settlements as an approach is challenging, on the other hand overused participation in development practice faces criticism for lack of proper analysis, insight and understanding. This thesis aims to study preconditions for and implications of slum residents' participation in slum upgrading and improvement programmes in the fourth biggest Indian metropolis - Chennai. Challenges for participation are analysed with respect to sustaining or to developing outcomes of upgrading programmes in the study area. The main objective of the field research in Chennai slums was to assess threats and opportunities for participatory development and the paper identifies some areas of possible difficulties for community participation in the context of slum dwellers' lives. The analysis further provides an outline of recommendations to be taken into consideration in designing a programme or a project.