Drawing on the institutional work perspective, we examine participatory budgeting (PB) implementation at Bayswater City Council, Western Australia, focusing on how institutional practices recalibrated the process following an initial failure. We show that the initial failure stemmed from insufficient discursive, material, and relational work, leading to low community engagement and trust deficits. Subsequent recalibration included reframing PB narratives, introducing accessible tools, fostering stakeholder relationships, and enabling alignment of community viewpoints with the council’s strategic goals. This study contributes insights into how intentional institutional practices transform participatory governance systems, offering valuable lessons for implementing inclusive and effective PB processes.