A traditional settlement is defined as an area with sound and a strong sense of traditional village character inhabited by a society that preserves their cultural and traditional practices. However, the society’s traditions and way of life have continuously been threatened as the country moves towards urbanisation, which is gradually changing the settlements. The objectives of this research are to identify the changes in the traditional settlement and identify the issues in deterioration of traditional Malay settlement. A mixed-method approach applied as the research methodology. The findings reveal the changes and impact include six underlying factors; natural disaster, lack of maintenance, modern development, destruction by irresponsible parties, lack of awareness and declining of traditional product in the market.