The research paper aims to focus on the issues and challenges in developing a sustainable model of an ideal heritage village project by using descriptive and empirical investigation methods. To capture the perception and understanding of the concept of sustainability of a Heritage Village, a mixed-methods approach was conducted by the researcher where document where reviewed, observations were done, structured interviews and a questionnaire survey was conducted involving resident's in the heritage villages of Pragpur and Garli in Himachal Pradesh, India. Through this research, the objective was to catalogues the resident's outlook and understand their belongingness towards their rural settlement. The analysis conducted, was also to understand their attachment to the heritage fabric which would act as a catalyst for their sustainable development. Due to the diversification in terms of architecture, social and cultural aspects, it was important to analyze the resident's perception towards the built heritage as it may vary to be more or less important to different people, community groups, or generations.