The study aims to understand the passive design strategies of domestic vernacular buildings in hot dry climate and to apply design techniques which can utilize the favourable and at the same time can minimize the unfavourable elements of the local climate on a modern building. This aim was led to evaluate and propose application of design solutions of passive cooling techniques for improving the indoor thermal environment condition. However, this study was considering thermal performance of building envelope in naturally ventilated buildings toward reducing energy loads in hot arid zone of Libya and Ghadames city in particular in terms of using passive cooling techniques, which has the most profound effect on a building’s indoor environment.