In recent years, there has been a surge in research pertaining to sustainable urban development. Importance–performance analysis (IPA) has emerged as one of the most widely used methods. However, few studies have combined IPA with structural equation modelling (SEM). This study introduces and evaluates an integrated IPA–SEM approach to assess the impact of perceived importance and performance of sustainable city dimensions on residents’ satisfaction and loyalty. The data for this study were collected from 425 survey respondents residing in Siliguri City of West Bengal, India. The results indicate that the ‘Keep Up the Good Work’ quadrant, consisting of social quality, connectivity conditions, and environmental quality, significantly and positively affected satisfaction. On the other hand, the ‘Concentrate Here’ quadrant concerning environmental pollution presented a negative yet insignificant relationship with satisfaction while both the ‘Low Priority’ and ‘Potential Overkill’ quadrants demonstrated no notable influence. Furthermore, a robust positive correlation between satisfaction and loyalty is confirmed. Overall, the findings offer valuable implications for urban planning, policy-making, and strategies aimed at enhancing Siliguri residents’ quality of life.