This paper presents a PRISMA 2020 systematic review evaluating sustainable adaptive reuse strategies for war-damaged courtyard houses in Baghdad and Mosul, Iraq. The study aims to establish the Palm-Digital-Carbon (PDC) framework—a proposed integration of date-palm-fiber materials, sensor-based HBIM ventilation control, and whole-life carbon accounting. Findings indicate that field measurements (1972) documented courtyard nighttime cooling in Baghdad, while calibrated simulations in Cairo demonstrated a reduction in annual energy use from 46.9 to 20.5 kWh/m² via combined thermal strategies. Additionally, low-emissivity secondary glazing reduces window heat loss by over 60%. Although 124 Mosul heritage houses were rehabilitated by late 2024, published energy data remains absent. Because no reviewed sources directly tested PDC components in Iraqi heritage contexts, preliminary estimates demonstrate that a 30 mm palm-fiber lining decreases wall U-values from 1.13 to 0.64 W/m²K, offering payback periods between 3 years (unsubsidized) and several decades (subsidized).