ABSTRACT In Canada’s multicultural context, diversity is often celebrated in city branding and promotion, yet, it is not clear what diversity means, to whom, and whether the advantages of urban diversity are well acknowledged to support inclusive place-making. Situated in two of Toronto’s most diverse inner suburbs, this paper explores how diversity and place are perceived, produced, and experienced by local immigrant and racialized communities in obsolete and stigmatized strip mall environments, and how power dynamics are presented and influenced through the place-making process. The findings reveal that, although the population is culturally diverse and immigrants actively contribute to suburban place-making, municipal plans and policies do not prioritize immigrant communities and businesses. This results in ineffective public engagement and a disconnect with the diverse communities, thereby impacting the outcomes of ethnic places. The current city-wide Business Improvement Area program also requires a renewed focus on diversity and inclusion. Without equity and inclusion as fundamental considerations in city planning and engagement processes, there is no guarantee that diversity can be effectively leveraged as an urban asset or strength. This oversight can adversely affect the outcomes of ethnic place-making, a process that aims to empower the relationships between people and place.