This paper presents a case study of the village of Mrkovi in the Bay of Kotor, Montenegro, showing the importance of landscape identification and assessment in planning the revitalization and development of Mediterranean rural settlements. The research revealed the methods of identification and evaluation of different landscape types. Moreover, it showed how such an approach could considerably contribute to the preservation of the space's identity and quality by taking into account the existing characteristics of the space or the relationship between cultural and natural heritage. The identification of the landscape types was followed by the evaluation of individual elements and assessment of vulnerability in relation to the space's natural, cultural, and visual quality. The first step in the process of preserving the elements that contribute to the landscape's identity was the spatial identification of the cultural pattern of traditional terraces with drystone walls. The results of analysis indicate a high risk of degradation of the basic landscape value. The effects of future interventions in the space, especially the planned construction of a tourist resort, can be mitigated if they comply with the guidelines related to the rational use of the space and delimitation of the construction zones. This paper points out the importance of a responsible attitude and planned approach regarding the cultural and natural landscape of Mediterranean rural settlements.2 of 15 development possibilities at the landscape level and proposed solutions for the preservation of the elements of the structure of the landscape could make a big contribution to the cultural landscape's identity and/or biodiversity [2,3].Geographical position of the Boka Kotorska Bay and its specific nature caused the formation of human settlements in this area in the remote past, as evidenced by cultural heritage, which is very important for the study of the history of a particular space. Villages in Boka Kotorska, over its long development history, have changed much less than the towns, and that is why the villages have preserved homogeneous traditional and conservative features.At their very beginning, the villages in Boka Kotorska were made up of several houses belonging to the same clan or kinship community. That is why many of today's villages and hamlets are named after the first families that were their original inhabitants. Villages in Boka mostly belong to so-called dispersed villages. The houses in the entire village or in some of its parts are scattered without any order. This is how most of the villages in the hills are organized. The villages are near the road, and there are plenty of houses on the slopes of the hills. Parts of the village are separated by valleys, streams, hills, and hill slopes. "The original inhabitants preferred to have their houses isolated, with the land around the house, and to be away from the road because it was believed that the house near the road partly belongs to someone else" [4].The position of the village was...