Games like Towerfolk
Games like Towerfolk include Kingdoms and Castles, Foundation, Manor Lords, Against the Storm, and Prison Architect. We matched them by the tags players give Towerfolk on Steam (City Builder, Simulation, Medieval, Strategy, and Base Building): closest matches first, and among equally close ones the better-known games.

Kingdoms and Castles
Shared: City Builder · Simulation · Strategy

Foundation
Shared: City Builder · Simulation · Medieval

Manor Lords
Shared: City Builder · Simulation · Strategy

Against the Storm
Shared: Simulation · City Builder · Strategy

Prison Architect
Shared: Simulation · Base Building · City Builder

Frostpunk
Shared: City Builder · Strategy · Resource Management

Banished
Shared: City Builder · Simulation · Strategy

Cities: Skylines
Shared: City Builder · Simulation · Strategy

Tavern Master
Shared: Simulation · Medieval · Management

Farthest Frontier
Shared: City Builder · Strategy · Medieval

Oxygen Not Included
Shared: Base Building · Colony Sim · Resource Management

Dwarf Fortress
Shared: Simulation · City Builder · Base Building

Ostriv
Shared: City Builder · Simulation · Strategy

Workers & Resources: Soviet Republic
Shared: City Builder · Simulation · Strategy

Empires of the Undergrowth
Shared: Simulation · City Builder · Strategy

Life is Feudal: Forest Village
Shared: City Builder · Strategy · Medieval

Kingdoms Reborn
Shared: City Builder · Base Building · Strategy

Norland
Shared: Simulation · City Builder · Strategy

Kingdom Two Crowns
Shared: City Builder · Base Building · Medieval

Settlement Survival
Shared: City Builder · Simulation · Management

RimWorld
Shared: Base Building · Strategy · Colony Sim

Stronghold Crusader HD (2012)
Shared: City Builder · Medieval · Base Building

Captain of Industry
Shared: Simulation · Base Building · Strategy

Dyson Sphere Program
Shared: Base Building · Simulation · Resource Management