Vernacular architecture is an irreplaceable cultural heritage and a valuable testimony of the past that identifies the character of a place. The continuous unregulated interventions on the buildings and the public space, the architecture that does not follow local vernacular characteristics and the abandonment of the buildings have led to the gradual loss of the traditional character of many mountainous areas. The town of Konitsa is a characteristic example of the above changes. It is trying to maintain its traditional identity, which is constantly distorted by the "decoration" of time. In the center of the town, the site of the old market, which used to be a vivid part of life and development of the town is currently characterised by an aesthetic and functional degradation. Local traditional buildings seem to suffocate and perish among the modern urban environment. Exploring and identifying the elements of local traditional character as well as and the modern needs of the local community, in this study, several proposals are presented concerning the renovation of the public space, the redesign of the facades of vernacular and modern buildings as well as the rehabilitation of abandoned buildings. The aim of this study is the recovery of the old market district’s lost traditional character and identity in order to enhance the attractiveness and the cultural value of the town for its habitants and its visitors.