The Line of Actual Control (LAC) has been tense recently, with the fiercest border conflict since 1962 at Galwan Valley in 2020. Despite extensive talks, trust is absent on both sides. Apart from infrastructural development and military buildup, new methods of increasing vigilance are being used by both, which include building Xiaokang or ‘well-off villages’ from the Chinese side and rehabilitating border villages by the Indian side. Indian border villages have historically held strategic importance but have become depopulated due to limited opportunities, leaving them as ‘ghost villages.’ India is working to support these villages and counter Chinese tactics to maintain territorial integrity. India can improve security and bilateral cooperation by leveraging the strategic and socio-economic potential of these villages. This paper examines the importance of border villages as hubs for cross-border surveillance and security measures amid geopolitical tensions, border conflicts, and broader security concerns. It aims to understand how these villages can promote peace, prosperity, and resilience in the Indo-China border region and provide policy recommendations for their development, thereby maintaining peace in contested border areas.