Abstract: Kandyan Home Gardens (KHG) of Sri Lanka are economically efficient, socio-culturally and politically embedded, ecologically sustainable unique places, which managed by dwellers based on the knowledge that transmits over generations, and experience gained by living in the society. The main objective of the study was to identify the mechanism behind it, especially biodiversity. To achieve the objective seven traditional villages of Kandy district of Sri Lanka were studied for 5 years. The main finding of the study is that biodiversity of KHGs is a part of place process of the study area. Hence, to identify the biodiversity and biodiversity conservation role of KHGs place process of the place has to be understood. Location determines the basic biophysical characteristics of the home gardens (HG). Social structures define the ethno-botanical values of plant species and create the demand for that resource. Then, based on ethno-botanical values of plant species, people change the place and its biodiversity as a place that produces essential resources for reproduction of social structures. In this sense, biodiversity of KHGs is a result of place process. On the other hand, HGs ensure the reproduction social structures by continues supply of resources to perform the institutional projects. It leads to the societal security and the stability (both in family and community). Such a feeling of structures motivates dwellers to maintain vast numbers of plant species in their HG.