Social cohesion within a neighborhood, which refers to harmonious interactions and mutual support among residents, is integral to the social sustainability of the neighborhood and results in residents' satisfaction with life. Homogeneity among residents in education, occupation, wealth and other characteristics likely fuels social cohesion. However, existing research is either silent or divided about the interplay among neighborhood homogeneity, cohesion and life satisfaction. For instance, one view suggests that neighborhood heterogeneity, rather than homogeneity, is favorable to sustainable development. The present study evaluated survey data collected from 100 residents in a relatively poor locale in Hong Kong, China, to address the unsettled interplay. Results show that perceived neighborhood social cohesion tended to contribute to life satisfaction, with this contribution being stronger when perceived neighborhood heterogeneity was lower. Perceived neighborhood heterogeneity also tended to erode perceived neighborhood social cohesion. These results lend support to the positive effects of neighborhood social cohesion and homogeneity on life satisfaction and imply that neighborhood homogenization can have salutary effects when it fosters social cohesion and facilitates the benefits thereof. (C) 2011 Elsevier Ltd. All rights reserved.