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For decades, scholars have highlighted the importance of social connectedness in later life. While previous studies have primarily examined the quantitative dimensions of community involvement, its qualitative diversity has remained underexamined, despite having distinct and nuanced implications for older adults. This study investigates the impact of community involvement on life satisfaction among older adults in South Korea, with a particular emphasis on the diversity of community involvement and surrounding residential contexts. This study uses data from the 2023 National Survey of Older Koreans and residential, integrated with nationally compiled residential information. Results from multilevel regression analyses suggest that the diversity of community involvement is positively related to older adults’ life satisfaction, even after controlling for their network size. Additionally, the findings show that this association is significantly amplified in residential areas with lower population density. This study discusses how community involvement shapes life satisfaction among older adults and how this effect varies across residential contexts.