In the context of the energy transition and a changing climate, microgrids have emerged as a promising solution for ensuring a resilient and reliable electricity supply for rural and remote areas. Beyond the technical and economic considerations, social acceptance will be immensely important if microgrids are to be widely adopted by the people who live in these communities. This requires complex community engagement strategies delivered by knowledgeable practitioners, encouraging collaborative participation and active community involvement in decision-making. This study investigated how community engagement was applied by nineteen organisations that received funding to undertake microgrid feasibility studies for ninety communities across Australia between 2020 and 2024. A Community-based Participatory research (CBPR) framework was employed to uncover the challenges encountered at each step of the engagement process and what was done to overcome them. The study revealed major community engagement challenges, including inadequate funding, low energy literacy levels, and engagement fatigue. The findings also suggest that due to the inherent complexity of microgrids, these projects need to take an iterative and flexible approach, planning for expansive and resource-intensive engagement with the community to be effective. The research findings provide valuable insights for community engagement practitioners, policymakers, and service providers involved in planning microgrids and developing related policies and programs for rural and remote communities.