The importance of empowering settings as a vehicle for social change has been documented in the community psychology literature. However, more research is needed to understand the processes and mechanisms through which participation in a particular setting may function as an empowering pathway for marginalised individuals. This research investigated how Forum Peduli Difabel Bantul (FPDB), a local disability organisation in Yogyakarta Province, Indonesia, has functioned as an empowering setting for its members. Informed by the transformative paradigm in disability research and constructivist grounded theory, the study examined the socio-psychological processes and mechanisms through which this organisation has enabled its members to resist the pervasive discrimination and marginalisation commonly imposed upon people with disability in the Indonesian society. The research data were collected from various sources including interviews with 18 members of FPDB, and were analysed using a grounded theory approach.