This study explores the history and design of residential buildings in Egypt, with a particular focus on heritage structures of architectural and cultural value. The research aims to examine traditional residential buildings, identify the design principles that shaped them, and investigate ways to integrate these principles into the current urban and environmental context. The goal is to maximize their potential reuse, promote their sustainability, and encourage governmental bodies, institutions, and investors to support their adaptive reuse. The study reviews the evolution of residential architecture in Egypt from prehistoric times to the twentieth century, offering a comprehensive understanding of the most suitable heritage buildings for adaptive reuse in line with new functions. Methodologically, the research applies an inductive approach through a theoretical framework based on a wide range of Arabic and English academic sources, as well as an analytical approach that examines international and local case studies of rehabilitated residential heritage buildings. Findings highlight that the adaptive reuse of heritage housing in Egypt requires deliberate efforts to restore identity and enhance both the cultural and economic value of properties. The study proposes key criteria for adaptive reuse, including functional flexibility, interior adaptability without compromising heritage identity, structural safety, appropriate conservation and maintenance methods, sustainability of the project, and its economic viability. These criteria emphasize the potential of repurposing heritage housing as luxury residences or tourist facilities while safeguarding its historical and architectural significance.