This study examines how co-creation unfolds in sustainable family entrepreneurship across nine co-creation cases in two family firms in Mexico and Colombia. Drawing on family embeddedness and entrepreneurial co-creation, we show that sustainable family entrepreneurship emerges through a relational process in which family and non-family actors negotiate sustainability meanings, organise participation and control, and generate outcomes over time. The findings identify three aggregate dimensions of sustainable family co-creation: family sustainable drivers and motivations, family sustainable management and control, and family co-created sustainable outcomes. These dimensions operate through six mechanisms: generating a shared view, conveying different interpretations, family coupling, family decoupling, family inclusion, and family separation. The study contributes to family entrepreneurship research by explaining how family embeddedness influences entrepreneurial action through evolving forms of family engagement.