This article examines the specific dynamics of urbanization in the mountainous regions of the wilaya of Tizi-Ouzou, located in the Djurdjura massif in Algeria. Characterized by a dense network of high-altitude villages, this region has experienced, since the mid-twentieth century, a gradual transition from rural settlement patterns to urban centers with a unique identity, situated halfway between market towns and an intermediate city. These urban formations result from exogenous and largely state-driven interventions linked to post-independence development policies, later reshaped by the introduction of market mechanisms. This study aims to understand how this specific form of mountain urbanization reshapes territorial organization, lifestyles, and residential choices, while questioning the classical rural/urban dichotomy. It adopts a qualitative methodological approach based on extensive fieldwork conducted in Upper Kabylia, focusing on three mountain municipalities: Aïn-El-Hammam, Larbaâ-Nath-Irathen, and Mekla. The empirical material combines institutional interviews with local actors and semi-structured interviews with residents and economic agents, complemented by in situ observations and two micro-surveys on weekly markets and commuting mobility. The results highlight that urbanization in the Djurdjura follows a hybrid trajectory, marked by the coexistence of a socialist institutional legacy and the progressive incorporation of capitalist dynamics. Mountain towns function primarily as spaces of consumption and access to amenities rather than as productive centers, while weekly markets play a central role in structuring urban centrality and maintaining strong links with the rural hinterland. Residential choices reflect an arbitration between the quality of life offered by village environments and the opportunities provided by proximity to urban services. Beyond its descriptive dimension, the analysis reveals an implicit and fragile balance between centrifugal and centripetal forces that sustains a continuous exchange between rural and urban spaces. This territorial configuration produces an “unexpected osmosis” in which urbanity develops in interaction with rurality without replacing it.