The proliferation of sustainable design approaches and assessment methods has resulted in a vast array of indicators. However, this abundance often leads to confusion during interpretation and application. Additionally, rapid urbanization and environmental concerns sometimes overshadow social and economic considerations, emphasizing environmental impact reduction. This study addresses these challenges through an integrated approach that combines a Systematic Literature Review (SLR) with a Decision-Making Trial and Evaluation Laboratory (DEMATEL) analysis to provide a holistic model for sustainable building design. The SLR was carried out individually through a relative Structural Query Language (SQL) regarding sustainable building design and vernacular principle. The output of SLR was subjected to DEMATEL model to recognize the holistic indicators interconnection and validate the proposed model. The research identified 23 global indicators for building sustainability worldwide, with five—Energy, Materials & Resources, Sites & Ecology, Indoor Environmental Quality, and Water—emerging as the most prevalent. Additionally, 22 consistently applied indicators in vernacular design practices exhibited significant overlap with those in sustainable design. This model integrated two novel indicators—Vernacular Principles and Social—Culture—with common sustainable building indicators. These primary indicators complement the common and applicable sustainable building indicators, ensuring a balanced approach that considers global contexts. DEMATEL analysis confirmed the validity and interconnection of these indicators, emphasizing the critical role of vernacular principles in achieving true sustainability.