Complex of five small buildings is planned in Prijeradi place, a village on the southern slopes of the Lovćen mountain. The location planned for construction is characterized by a picturesque environment, the configuration of the terrain is slightly sloping, and the surrounding form of housing consists of residential houses with courtyards. The location have a view of the Tivat bay and its surroundings, and the nearness of the Lovćen mountain gives a unique natural ambience with the freshness of the mountain landscape. In design process of the settlement, the starting point was the idea that the buildings should be smaller in size, arranged so that they have a view towards the bay. The buildings are positioned on the cascading terrain in such a way that they do not disturb each other's views. The terrain is shaped by paths and drystone build in the traditional method in local stone, forming cascades where olive groves are planned. The guiding idea of the design of the settlement is to create the atmosphere of life in a traditional household, so the archetypal gabled stone house was taken as the basic form of the buildings. Such a traditional form has been transposed into a modern object with the treatment of openings that correspond to the needs and aspirations of the users. In this way, the created buildings were harmonized with the existing context, and in terms of function and needs, they met the requirements of modern housing.