Community‐conserved areas (CCA) have the potential to improve local ecological knowledge, ecosystem services, livelihoods, and biodiversity conservation. This study examined the sustainability and community management structure of two recently established CCAs in Sabah, Malaysia. Data were gathered using Ostrom’s design principles (ODP), content analysis, and focus group discussions. Both CCAs met all eight ODPs and were sustainably maintained by their communities through the evolution of several endogenous CCA management structures. Land tenure security for CCA sustainability may be enhanced through formal recognition (ODP‐7), nested enterprises (ODP‐8), and conflict resolution (ODP‐6). The findings reveal that indigenous communities can sustainably manage their natural resources and suggest ways to improve CCA management. Inclusion of indigenous communities in legal frameworks and CCA management should be fostered in the National Forestry Policy. The concept of CCA can be promoted elsewhere towards conserving natural resources and empowering communities for their wellbeing.