This study presents a fire risk assessment of traditional wooden dwellings in Southern Hunan, focusing on Zhoujia Compound—a nationally protected cultural heritage site. By applying Pyrosim fire simulation software, we modeled fire spread, smoke dispersion, and temperature variation under localized architectural and environmental conditions. The simulations, informed by real-time wind speed monitoring, revealed that key fire risks stem from open flame activities during festivals, charcoal heating, and inadequate electrical wiring. Structural features such as interconnected wooden beams and open courtyards exacerbate fire spread. The results identified high-risk zones and demonstrated that wind speed and building orientation significantly affect fire dynamics. Based on these findings, we propose targeted fire prevention strategies, including fire-retardant treatments, improved compartmentalization, and community-level fire education. This research offers a novel, simulation-based approach to improving fire safety in traditional villages, contributing to both cultural heritage protection and rural fire risk mitigation.