Housing is a widespread and complex issue with a variety of dimensions. First, housing was considered as a physical location and as a shelter and basic necessity of the households, but today the concept of dwelling as the place that provides all the services and facilities necessary for a better life of the family has been created. One of the issues discussed at many conferences and in general in the scientific community is the definition of sustainability in the psychological point of view, along with the ways to introduce this concept into the architecture and human habitat environments. This research first begins with the main question about how the concept of sustainability can be found within the scope of housing. Then existing resources search is done and accessible projects are analyzed and the weaknesses and strengths of traditional architecture and contemporary architecture are compared. Finally, the relationship between the definitions of three concepts: dwelling, sustainable design and traditional Iranian architecture was discussed. At the end, the sustainable design that is also appropriate to the Iranian culture was presented.