What innovations of socially just psychological practice exist for mental health professionals working in the context of poverty? This article argues for participatory action research (PAR) as a new horizon not only with regard to the creation of knowledge but as a community-based practice/action that promotes the emotional well-being of people surviving poverty and other forms of oppression. After the presentation of this argument, an ongoing PAR project in a poor urban community is described. This article explores its impact on all participants through observations from field notes along with the results of a focus group in which community co-researchers contributed their experiences of PAR. Finally, key practice-related considerations and other implications for mental health practitioners are proposed.