The historic buildings of a region are important cultural heritage for its future generations. At some places such buildings might be unable to serve their actual purposes for which they have been erected, due to various reasons such as bad state of preservation, illegal occupation, encroachment, and abandonment. In such cases, the concept of using the adaptive reuse can well protect them as cultural heritage. The adaptive reuse of historic buildings has become an approach worldwide, which extends its lifespan. At the same time, the reuse of such buildings will decrease further use of material for fresh and new construction, avoid unnecessary transportation, wastage of energy and resource and control air pollution for sustainable environment. The Sethi haveli complexes in Peshawar city is portraying the traditional style of domestic architecture of the elite trading community in the region, exhibiting the local taste in combination with central Asian. Built in the 18th /19th century, these haveli complexes are in deteriorating conditions that need to be preserved and reused. Further, recreational values should be generated by adaptive reuse, including self-growth, health benefits and social benefits. As the creation of activities is a big attraction for tourists in the field of heritage reuse, the natural environment can be used to organise and design heritage indoor/outdoor events. As observed with the evaluated Sethi haveli complexes, historic buildings that are re-functioned with the public use, for example cultural, educational, commercial and use, are more productive in contributing to the social development of the walled city of Peshawar. The adaptive reuse of abandoned Sethi haveli complexes in the walled city of Peshawar will subsidise the sustainability and liveability of the city. For the continuity of the historic buildings, social aspect should be deliberated with all-encompassing approach.