This article examines grassroots skateboarding initiatives in Morocco to explore how locally embedded sport communities contribute to rethinking knowledge production and power relations within the Sport for Development and Peace (SDP) field. Drawing on ethnographic fieldwork within a local informal skateboarding community organization, the study analyzes how grassroots actors navigate material constraints, spatial governance, institutional dynamics, and gendered participation through locally situated practices. The findings show that many outcomes commonly attributed to SDP programs – such as youth engagement, community building, and inclusive participation – are already produced through informal, community-driven sports initiatives. By centering these practices, the article challenges dominant SDP approaches that privilege formal organizations and externally designed interventions. Through postcolonial and Orientalist critiques, it argues that grassroots initiatives generate situated knowledge that disrupts deficit-based representations of Global South communities while revealing the broader power structures shaping sports and development. At the same time, the study highlights the ambivalent positioning of grassroots actors within processes of “inclusive neoliberalism,” where local agency both navigates and reproduces global inequalities. The article concludes by advocating for a reorientation of SDP research and practice toward grassroots knowledge, context-sensitive engagement, and non-interventionist forms of transnational support.