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Background Marginalised communities experience disproportionate health inequalities, with existing research indicating poorer health outcomes, increased frailty, and delayed dementia diagnoses among older South Asian and Muslim (SAM) populations. Despite these disparities, limited attention has been given to the perceptions of ageing and preferred living arrangements within these communities.Methods This qualitative study employed a participatory approach, engaging 36 participants in a co-produced workshop that included older South Asian men and women, members of the public, general practitioners, and care staff. The study design and analytical framework were informed by Levesque’s conceptualisation of access to healthcare. Data on perceptions of living arrangements, including care homes, sheltered housing, and day care centres, were gathered through participatory group activities using vignettes and prioritisation exercises. Data was analysed using a reflexive thematic approach.Results Participants reported that stigma and shame influenced the reluctance to consider formal living arrangements in later life. A strong preference for ageing in place was linked to cultural and religious expectations that adult children should care for ageing parents. Three overarching themes emerged: (a) caring within the home, (b) community education, and (c) workforce training. Care homes were considered acceptable if they were tailored to meet cultural needs, specifically through the provision of same language and same gender staff, prayer facilities, and provision of culturally appropriate dietary options.Conclusion The findings underscore the complexities faced by families caring for older SAM adults, particularly in navigating cultural expectations and limited-service provision. Importantly, the study highlights the potential of co-designing inclusive living arrangements in collaboration with SAM communities, policymakers, and practitioners to enhance equitable access to sustainable health and social care services.