This research paper examines threshold spaces in traditional housing within historic Indian cities, emphasizing how these transitional areas are shaped by cultural, social, and environmental influences. It underscores that thresholds function beyond mere physical divisions between interior and exterior; they are intricate spatial elements that engage the senses and perception. Key findings include the following: (a) Historical evolution: traditional dwellings display layers of history, shaped by cultural, economic, and climatic factors. (b) Character and morphology: this paper explores the qualities and structures of threshold spaces, analyzing features such as transparency, material choice, hierarchy, and enclosure. (c) Social significance: thresholds play essential roles, supporting a variety of activities, providing shelter, defining boundaries, enhancing community interaction and security, and contributing to residents’ identities. (d) Design implications: insights from this study suggest that a deeper understanding of these spaces can enhance design strategies for transitional areas in housing, highlighting their functional and socio-cultural value. The study adopts a structured comparative analysis of six case studies, evaluated at four scales—township, neighborhood, dwelling, and threshold—focusing on spatial parameters including design, function, definition, structure, and sequence. Overall, this paper highlights the critical role of threshold spaces in architecture and urban design, demonstrating their potential to enhance social interaction, define spatial relationships, and reflect cultural significance in contemporary design practices.