This paper delves into the legal complexities of establishing human settlements in space, a frontier rapidly transitioning from speculative to tangible due to advancements in aerospace technology. Despite the progression, significant legal challenges arise, particularly concerning the applicability and adequacy of current space law, primarily governed by treaties like the 1967 Outer Space Treaty (OST). These treaties, formulated when permanent human habitation in space seemed implausible, now reveal notable gaps in addressing property rights, governance, and commercial exploitation of space resources. This paper first examines existing legal frameworks, highlighting their relevance and limitations in space settlements. Key focus areas include property rights on celestial bodies, jurisdiction and governance of extraterrestrial settlements, and liability and safety in these habitats. The paper then explores recent initiatives, like the Artemis Accords, which attempt to bridge some legal gaps but lack the standing of formal international treaties. The research underscores the pressing need for evolving legal landscapes to accommodate the emerging requirements of space settlements. It emphasizes the importance of international cooperation in developing comprehensive legal frameworks that can navigate the intricacies of space settlements, addressing issues such as resource utilization, dispute resolution, and the integration of private sector activities. The paper concludes by underscoring the necessity of an adaptable legal framework, harmonizing with technological advancements and ethical considerations, to ensure responsible and sustainable human settlements beyond Earth.