Today's urban areas are experiencing an increase in population, which is also increasing the demand for socially, environmentally sustainable and inclusive spaces. Public spaces with distinctive elements that shape placemaking in urban areas will contribute to the demands of their residents. Thus, this study explores the function of public art in fostering placemaking and meeting the psychological, cultural, and social requirements of locals in Chengdu, China. In China, public art is employed as a vital tool for cultural expression in the development of urban culture. Chengdu is selected as a case study location because to its identity as a megalopolis of 20 million population, in the central region of Sichuan, have allowed contemporary art and architecture to be fostered in unconventional and exciting ways. The total of 383 structured questionnaire survey were distributed to the random users around the Chengdu city, while statistical package for the social sciences (SPSS) software was use to process the data. The results were in forms of statistical description and correlation analysis were validated via partial least squares structural equation model (PLS-SEM). The results show that public art cognition has a significant positive impact on placemaking and demand satisfaction, while interactive behaviour, as a key mediating variable, plays an important role between space/material preferences and psychosocial outcomes. Descriptive analysis shows that although Chengdu residents generally have a certain degree of cognition of public art, they still have a strong demand for improving its interactivity, local cultural relevance and emotional resonance. This study emphasises that in rapidly developing cities in Chengdu, can be sustainably setting via placemaking of public art. By combining public art with local culture and public participation design principles can effectively enhance spatial justice and environmental identity. The study finding provide theoretical basis and practical suggestions for policymakers and urban planners, that public art can be used as an effective tool to promote urban sustainable development and social inclusion. Keywords: Public art, Placemaking, Interactive, Urban culture, Public participation, Design principles