In recent years, small cities have experienced rapid development, and the living standards of their residents have increasingly approximated those of larger urban centers. Due to their smaller scale, these cities have inherent advantages in transitioning to sustainable development models. The post-pandemic era, characterized by job reductions in large cities and the economic appeal of lower living costs, has seen a migration flow from large to small cities. The Chinese government has traditionally emphasized urban growth. While recent policies have started to incorporate environmental considerations, there remains a limited focus on the well-being and living conditions of city inhabitants. This study aims to evaluate the sustainable urbanization of small cities from a life satisfaction perspective, emphasizing indicators closely related to residents’ well-being. Employing the Delphi method and Analytic Hierarchy Process (AHP), this research identifies persuasive evaluation metrics tailored to the unique contexts of small cities. This work addresses the research gap in sustainable development indicators at the small city level. By emphasizing the perspective of residents’ quality of life, it advocates for local governments to prioritize the well-being and experiences of their inhabitants.