Telheiras Sul (1974) exemplifies the Portuguese state’s response to Lisbon’s 1960s housing crisis, reflecting emer-ging concerns with identity and environmentalism. Rooted in a former garden city and integrating an old village core, the plan addressed hygiene, ecological, and social needs. Unlike Le Corbusier’s Plan Voisin, it balanced standardized housing with existing urban fabric. This paper explores how to conserve and adapt the area while ensuring quality of life, recognizing housing as a broader urban experience. It argues that strong local identity and community resilience stem from aligning architecture, urban policy, and resident participation. Telheiras Sul’s inclusion in Lisbon’s Heritage Protection Charter confirms its significance and helps preserve its character, reinforcing community belonging.