We studied a data set of 28 well‐preserved lunar craters in the transitional (simple‐to‐complex) regime with the aim of investigating the underlying cause(s) for morphological differences of these craters in mare versus highland terrains. These transitional craters range from 15 to 42 km in diameter, demonstrating that the transition from simple to complex craters is not abrupt and occurs over a broad diameter range. We examined and measured the following crater attributes: depth (d), diameter (D), floor diameter (Df), rim height (h), and wall width (w), as well as the number and onset of terraces and rock slides. The number of terraces increases with increasing crater size and, in general, mare craters possess more terraces than highland craters of the same diameter. There are also clear differences in the d/D ratio of mare versus highland craters, with transitional craters in mare targets being noticeably shallower than similarly sized highland craters. We propose that layering in mare targets is a major driver for these differences. Layering provides pre‐existing planes of weakness that facilitate crater collapse, thus explaining the overall shallower depths of mare craters and the onset of crater collapse (i.e., the transition from simple to complex crater morphology) at smaller diameters as compared to highland craters. This suggests that layering and its interplay with target strength and porosity may play a more significant role than previously considered.