According to the Vedic Indian philosophy “Yatha Pinde Tatha Brahmande” (As is the microcosm, so is the macrocosm),built environments should mirror the cosmic order. Panchamahabhuta, the five fundamental elements of Vastu Shastra (Earth, Water, Fire, Air, and Space) offers a regenerative framework for sustainable design. In contrast to modernist approaches, Vastu fosters long-term environmental balance, energy efficiency, and mental well-being by aligning human settlements with natural forces. This study explores the potential of Panchamahabhuta-based Vastu Shastra as a regenerative framework for climate-resilient urban planning. Using Jaipur as a primary case and Masdar City for comparison, we examine whether ancient Indian planning systems offer measurable ecological benefits. A mixed-methods approach is used, combining computational simulations (CFD, EnergyPlus), expert interviews, and public perception surveys. The study records up to 25% wind flow optimization and a 3.5 °C improvement in thermal comfort within Jaipur’s bazaars, reflecting the environmental intelligence of the Pitha Mandala layout. It proposes a hybrid framework that reinterprets traditional planning through GIS, AI, and parametric design. While acknowledging cultural biases in reading ancient systems, it addresses the challenges of adapting Vastu to diverse modern climates. Aligned with the Viksit Bharat 2047 vision, the study integrates the Panchamahabhuta framework, applying Earth (Prithvi), Water (Apah), Fire (Tejas), Air (Vayu), and Space (Akasha),to enhance spatial resilience. Practical applications include optimizing wind corridors (Vayu) and orienting built forms (Tejas, Prithvi) for thermal performance, showcasing a regenerative, climate-responsive urbanism rooted in Indian knowledge systems.