Biophilic Urbanism is a design approach that prioritises human–nature relationships within urban environments. Along with other natural elements, water-related features, such as rivers or oceans, and even man-made water bodies like ponds, fountains or water spouts, exhibit the potential to foster this relationship across neighbourhoods and cities. Kathmandu Valley has a rich history of urban water architecture and demonstrates a strong integration of water bodies in the planning and design of its traditional towns. This paper examines the role of water bodies in fostering Biophilic Urbanism in the valley with a particular focus on the provision, use and management of the ponds (pukhus in local language) based on the data collected from secondary sources, observations and questionnaire surveys with the users. Findings show that the ponds are essential components of a larger hydrological, social and ecological system of a town that influenced the development of settlement patterns and the network of public spaces. These ponds were strategically placed within residential neighbourhoods, urban nodes and temple complexes to function as a multiuse urban amenity, allowing residents to interact with them on a daily basis. In addition to being an important element of the valley’s unique water management system, these ponds are deeply connected to the cultural and religious practices of the people and stand as a testimony of ‘ecological intelligence’. While these historical ponds face critical threats in the aftermath of rapid and uncontrolled urbanisation in recent decades, their continuous functioning through preservation and regular maintenance is of the utmost importance to uphold their cultural, religious and ecological values. This could be a significant step in pursuing Biophilic Urbanism to create resilient and sustainable cities in contemporary times.