This research examines the evolution of architectural identity in the Andaman and Nicobar Islands, transitioning from indigenous, survival-based dwellings to contemporary modern interior environments. Traditional typologies such as the Onge huts, Mus and Shom village systems, and the Kar (Nicobarese kitchen) demonstrate highly refined responses to tropical climate, social organization, and material efficiency. Despite this rich heritage, contemporary architectural developments—particularly resort-based designs—often fail to integrate indigenous knowledge systems, resulting in a significant “design gap.” Modern structures prioritize comfort and permanence but frequently lack climatic responsiveness, spatial intelligence, and cultural depth. This study identifies the missing links between traditional and modern design approaches and proposes a reinterpretation strategy that translates indigenous principles into contemporary interior design. The research advocates for a design language that merges luxury with sustainability and cultural continuity by reintroducing passive design strategies, material authenticity, and community-oriented spatial planning.