Segregating one space from another is a rudimentary act of architecture and the basic principle of this act is creating differentiation between outside and inside. Thresholds, in their expanded or summed form, also produce spaces. They establish the staging for threshold areas in conjunction with space-defining elements. Threshold spaces are typically complicated spatial formations that serve as transition points. They pose a challenge to the interacting human senses in terms of perception. In this research threshold areas have been studied under a specific typology of architecture i.e the traditional housing in historic cities of India. The traditional dwelling settlements have evolved and grown over multiple layers of history, influenced by the culture, society, economy, climate and topography. The purpose of this research is to examine the characteristics of these transition spaces of the traditional dwelling units in relation to the symbolic reference and social meanings assigned to them that influence the architectural and urban spaces attached to them. It seeks to describe transition space in terms of its nature, character, morphology, and social significance. Transparency and material articulation, as well as hierarchy and enclosure, will be investigated. The importance and quality of the nature of "transition" will be examined from the inside to the outside. The research reveals that the space has great functional and socio-cultural importance. It allows multiple activities, provides protection from sun and rain, defines boundaries, connects people within the neighborhood, enhances security and gives an identity to the owner. The contributions made by this research have the potential to improve design considerations for transition areas between the dwelling units and the street.