This literature review aims at summarizing the state of knowledge related to small urbanized settlements. The significance of researching these localities can be inferred from the fact that a growing share of urban population lives in such agglomerations with a population above 10,000 and below 50,000 to 100,000 inhabitants. This fact is not limited to India and a large share of the urban population worldwide lives in small and medium cities, which are understudied. The same dearth of research applies to the Indian context, as will be evident in this review, despite the importance of the resilience of an urban system comprising a large number of small towns and the diversity of these settlements in terms of their economic base and their social structure.