Mega-events like the Olympic Games present both opportunities and challenges for sustainable urban development. This study addresses a critical knowledge gap: how can temporary Olympic Villages transition into permanent, inclusive urban communities that deliver lasting social, economic, and environmental benefits. Drawing on grounded theory and cross-case analysis of six Olympic events, we establish a three-tier P-R-L model (Physical-Relational-Legacy) that explains sustainable community structure evolution. The Physical layer operationalizes resilient space design through adaptive infrastructure; the Relational layer institutionalizes equitable governance through stakeholder integration; the Legacy layer consolidates inclusive urban dividends beyond traditional metrics. Our findings demonstrate how these dimensions reinforce mutually to support sustainable community transitions, offering a replicable framework for mega-event planning aligned with SDG 11 (Sustainable Cities and Communities) and SDG 16 (Peace, Justice and Strong Institutions). The research contributes actionable guidance for policymakers, urban planners, and event organizers seeking to maximize positive sustainability outcomes.