The Tibetan Plateau is one of the world’s most extreme habitats and one of the most challenging ecosystems on the planet. Many multi-ethnic traditional villages have developed on the plateau over its long history, and are an essential component of human settlement. It is critical to research them, and it is also significant for China’s goals to make the Tibetan Plateau a distinctive ethnic cultural preservation site and a world tourist destination. While there have been limited studies focusing on villages in the entire Tibetan Plateau area, as a result, we aim to expand the field of research on the regional study of traditional villages and make progress in research throughout the Tibetan Plateau. The question addressed in this study is what the current characteristics of the distribution of traditional villages on the Tibetan Plateau are, and we attempt to propose suggestions for the preservation of traditional villages according to the distribution characteristics. Methods such as the closest neighbor index, kernel density estimates, and spatial autocorrelation analysis are used to investigate the characteristics of the spatial distribution of traditional Chinese villages on the Tibetan Plateau, as well as regression analysis of the factors that control this distribution. The findings indicate that traditional villages are unevenly distributed over the plateau, with fewer villages in the northwest and more in the southeast, showing an agglomeration type of distribution. The village distribution on provincial and municipal is uneven with a large step difference. Tibetans make up the majority of the population in the villages, but other ethnic groups are present at the margins of the plateau. The distribution of traditional villages shows “big scattered, small gather” characteristics, and one core cluster (the Hehuang Valley area of Qinghai Province) and five high-density areas (the western Sichuan Plateau; the Three Parallel Rivers area of Yunnan Province; the Yarlung Zangbo, Nyangqu, and Lhasa rivers (YZN) area of Tibet Province; the Yushu area of Qinghai Province; and the Gannan area of Gansu and Sichuan province). The natural environment has the strongest influence on the distribution of traditional villages, followed by human impacts, especially concerning the distribution of single and multi-ethnic villages, and socioeconomic factors, which have multiple influences.