Until now, autoclaved aerated concrete (AAC) was widely used in the construction industry mainly as a relatively simple (commodity) wall building material. The need and regulatory pressure for green, energy neutral buildings for residential housing and nonresidential constructions is becoming stronger every day. Consequently, we must challenge our construction designs and way of building to deal with increasing regulations, climatic and seismic conditions around world's geographical areas. This article presents new generation panel construction methods and a realized case study for a passive residential housing project designed with mid-size modular AAC panels.The role and importance of this building method, applied with light-and heavy-reinforcement panels, is also highlighted. The structural AAC panel design will be complemented and finished with autoclaved lightweight concrete (ALC) blocks, drywall sheets, and AAC partition panels. This partnership of building materials with installation integration at early stage of the construction process results in excellent insulation, efficient building, and supports HVAC. K E Y W O R D Sclimatic and seismic conditions, new generation, panel design for new regulations, passive housing, passive residential housing projects, sustainable AAC building system 1. A sustainable building is a building that, in its design, construction, and operation, creates a positive impact on our climate and natural environment. Green buildings preserve precious natural resources and improve our quality of life. There are many features that can make a building "green." Some of the key features, among others, include efficient use of energy, water, and other resources. 2.Use of renewable energy, such as solar energy. 3.Pollution and waste reduction measures, and the enabling of reuse and recycling. 4.Good indoor environmental air quality. 5.Use of materials that are nontoxic, ethical, and sustainable. 6.Consideration of the environment in design, construction, and operation. 7.Consideration of the quality of life of occupants in design, construction, and operation. 8.A design that enables adaptation to a changing environment. 9.A design that makes a building future proof, short term and long term.Taking into consideration the dynamics of the above features, one can conclude that green building requires a "Total Approach" that ce papers. 2018;2:513-525.wileyonlinelibrary.com/journal/cepa 513