Traditional dwellings in southwest China were built and adapted to nature with unique structural performance. But further improvements are needed in many aspects. The authors analyzed problems of the traditional dwelling buildings in Southwest China from the aspects of structural performance, thermal insulation performance, sound insulation performance as well as fire resistance performance. They summarized research progress and improvement measures on performance of the traditional dwellings. Suggestions were also provided for reference to further research to promote the traditional dwellings adapting to the needs of modern life.