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This narrative systematic review explored (1) how neighbourhood interventions promote positive youth development (PYD) and (2) the role of context for these interventions. We asked: How do neighbourhood interventions become effective in promoting PYD for adolescents aged 12–18 years? Articles (n = 19) were analyzed using a framework integrating standards of health promotion evaluation and elements of the ecological systems perspective. First, results highlight the key characteristics of interventions that promote PYD. An intervention’s atmosphere encouraging supportive relationships and an intervention’s activities aiming to build skills and that are real and challenging promoted PYD elements including cognitive competences, confidence, connection, leadership, civic engagement, and feelings of empowerment. Secondly, this review identified facilitators (e.g. partnerships and understanding of the community) and constraints (e.g. funding and conflicts) to an intervention’s integration within its context. Results regarding interventions’ characteristics promoting PYD confirm findings from past reviews. Our findings indicate that context is an important element of effective interventions. This review encourages future evaluations to analyze the role of context to build a better understanding of its role.