Historical sites generally contain cultural and natural elements and contribute to the charm of a city. Their development can also help shape urban branding and boost economic growth. Therefore, this study selects two representative pagoda courtyards in the ancient capital Xi’an to investigate how historical sites can benefit more people. Both of the pagoda courtyards are outstanding cityscapes since they were erected in the Tang Dynasty. They have been continually repaired and maintained by later generations, and the surrounding environment design of the courtyards is organically integrated with the urban structure of the past dynasties. In the wave of urban construction in recent years, the two pagoda courtyards are also facing different environmental design paths. However, both scholars and the public are concerned that large-scale space development will damage the psychological perception of historical sites. The Perceived Restorative Scale (PRS) was adopted to study the courtyards' mental restorativeness. Through semi-structured interviews and thematic analyses, the diverse sources of mental restoration are demonstrated. Overall, PRS results verify the mental restorativeness of the historic pagoda courtyards. Furthermore, the pagodas' varied modern urban designs manifested different restorative perceptions for individuals. This study provides pre-development data for the SW regarding its spatial perception. Secondly, this study provides a scientific basis for urban planning and management strategy, adding to the debate surrounding conservation and utilisation of urban historical/cultural environments. It informs open design principles for the regeneration of historical/cultural environments in the urban fabric.