Sustainable architecture faces challenges in cold climates, where traditional houses are constructed using wood logs, and stone. These materials provide insulation but are unsustainable due to deforestation. Contemporary homes, though widespread, have low insulation, requiring more energy. This research proposes a development model employing environmentally friendly materials and techniques for enhanced thermal performance. It compares conventional, modern, and proposed houses and concludes that plastic bricks, although costly when compared to concrete, offer superior insulation and sustainability. The research recommends utilizing fiber cement boards and energy-efficient systems. It recommends the use of plastic bricks to reduce waste. Combining traditional and modern construction techniques is recommended. Institutional support for green buildings is required. The research recommends the integration of conventional knowledge with the usage of modern materials to design energy-efficient dwellings under extreme climates. Future studies may include better insulation, renewable energy, and the socioeconomic effect of sustainable architecture.