The paper shares the design and innovative systems at the BAITYKOOL prototype, the self-sustaining, energy-efficient 90 m2 prototype functioning as a living lab at the Sustainable city Dubai. The architecture of the solar-powered habitat designed to suit the culture and climate of the extremely warm region works on the combination of passive and active strategies with a biological ecosystem. BAITYKOOL, the house, is made from recyclable and low environmental impact materials, producing electricity using building-integrated solar panels installed on the pergola shading the patio. The architectural actions and strategies were developed with passive and active strategies to test the innovative envelope and multilayered composite wall system and the shading potential for glazed opening to effectively reduce cooling load and lighting system. The objective of the paper is to share the design of the BAITYKOOL prototype, and its systems designed for the extreme warm climate. Further, to discuss the importance of shading and natural ventilation with experiments being performed, data was collected under varied climatic conditions across the year to analyze the thermal comfort conditions at the habitat. A framework developed with use of passive and active strategies with the reduced energy benefits created the ambient light quality and ventilation taking advantage of cooler temperature at night during the favorable weather between November and February and helps flush out hot air, improving the air quality. A smart building management and monitoring system works on optimizing the energy and use of water with combined passive and active strategies developed in response to the climate. The prototype exhibits the innovative systems and strategies as an eco-responsive solution developed for the extreme warm climate of the region to create a healthy living and working habitat adaptive to the climate actions and future developments for sustainable living.