The purpose of the study was to explore health literacy and community engagement in relation to active living with newcomer young people and their families. We employed a case study design and a participatory approach. The data collected included photovoice and photo-assisted focus group interviews, which included an initial stage when youth participated in workshops creating collages on healthy living. A follow-up focus group centred on discussion of the collages with subsequent training on the photovoice method and the use of the cameras, and a second focus group, which incorporated photos taken by participants during the programming and their leisure time. Different themes were developed from the data: active living, balance, body talk, challenges, environment and health, culture and health, family, health and food, health and safety, knowledge, source of knowledge, peers and friends, personal hygiene, recreational activities, socio-emotional health, social isolation and spiritual health. Excerpts were taken from the different themes to demonstrate the immigrant/refugee youths' understanding of levels of health literacy and its contribution to healthy eating and active living. The qualitative findings are presented under the different tenets of health literacy. Health literacy extends beyond the individual level and effects the whole family and communities; intervention need to extend to include community connections and involvement activities. Future research needs to focus on the long-term effects of critical health literacy among immigrant communities.