Urban settlements are complex human-made systems where interaction between the outdoor environment, structures, and humans follow physical laws of thermodynamics. Therefore, this course introduces the analysis of urban neighborhoods from a thermodynamics perspective, considering the heat exchange between different urban elements such as buildings, vegetation, blue areas, ground, and the surrounding environment. The complex interaction of all urban factors is presented considering a case study neighborhood at EPFL. Special attention is paid to the Urban Heat Island effect and mitigation strategies. In addition, the direct and indirect effect of the outdoor environment on the comfort of humans is discussed.