The building selected to be studied is the tower house of the Ganić Family. The standing portion, at the edge of a total collapse, is located in Rožaje Town in the eastern part of Montenegro. Besides the analysis of tower houses, an overall analysis of historical houses in Montenegro was also done as a step in the development of housing concept in this region. Case study building was evaluated together with the physical and historical characteristics of the area and the period that these buildings belonged. Information obtained by the survey was used for the description and analytical evaluation of the building in terms of; architectural elements, spatial characteristics, construction techniques, material use, structural failures, material deteriorations and alterations. In order to understand the original state of the building better, other tower houses in the region were also investigated and their characteristics were compared with the characteristics of Ganić House. Together with historical research, the results of comparative analysis, which were obtained by different reliability degrees for the components and elements missing or unknown at present, was utilized for the restitution of the house. The information obtained in the restitution phase was used as the base for the determination of intervention decisions in restoration phase, which became the conclusion of the study. The new function, proposed restoration project, is hoped to be beneficial for the owners and the building itself while providing an active use by the citizens for educational, as well as, recreation purpose.