The concept of ‘living heritage’Living heritage has emerged as a transformative perspective within heritage studies, notably surpassing the long-standing material-based and values-based approaches. At its heart, ‘living heritage’ encapsulates the continuity of connection between communities and their heritage, presenting a new paradigm that not only redefines the ‘what’ of heritage but also the ‘how’ of its conservation, and more importantly, the ‘who’ is responsible for its protection. This Chapter critically assesses the evolving understanding of ‘living heritage’Living heritage, with a particular focus on residential heritage. Specifically, it explores an already existing phenomenon found in various cities worldwide—intergenerational houses that have been passed down across generations, where inheritors have chosen to continue residing in their ancestral homes. This particular type of heritage is referred to as ‘inhabited living heritage’. By introducing the concept of ‘spatial practiceSpatial practice,’ this study demonstrates how communities connect to their inhabited heritage. The daily activities, customs, and behaviours of the inhabitants of ancestral homes help them to reproduce these spaces as a continuation of their tangible heritage, adapting them to meet present and future needs. The methodological foundation of this research is built on a review of existing literature and conceptual frameworks, complemented by investigations into practical experiences within historical residential contexts where families have continuously inhabited their ancestral homes. The case studies examined in this research are in Iran and ItalyItaly. They illustrate how living heritageLiving heritage embodies the lived experiences of residents in historical contexts, materialising in the spaces of their daily lives and ongoing rituals. The findings also illuminate a shift from a traditional top-down managerial perspective to a more dynamic, community-driven approach to heritage protection and conservation, emphasising a revitalised bottom-up preservation methodology.