Sensitivity of the PALM model 6.0 with respect to land-surface and building properties is tested in a real urban environment in the vicinity of a typical crossroads in a densely built-up residential area in Prague, Czech Republic. The turbulence-resolving PALM is able to simulate the urban boundary layer flow for realistic setups. Besides an accurate representation of the relevant physical processes, the model performance also depends on the input data describing the urban setup, namely the building and land-surface properties. Two types of scenario are employed. The first one is the synthetic scenarios altering mainly surface and material parameters such as albedo, emissivity or wall conductivity, testing sensitivity of the model simulations to potentially erroneous input data. Second, urbanistic-type scenarios are analysed, in which commonly considered urban heat island mitigation measures such as greening of the streets or changing surface materials are applied in order to assess the limits of the effects of a particular type of scenario. For the synthetic scenarios, surface parameters used in radiation balance equations are found to be the most sensitive overall followed by the volumetric heat capacity and thermal conductivity of walls. Other parameters show a limited average effect; however, some can still be significant during some parts of the day, such as surface roughness in the morning hours. The second type, the urbanistic scenarios, shows urban vegetation to be the most effective measure, especially when considering both physical and biophysical temperature indicators. The influence of both types of scenario was also tested for air quality, specifically PM2.5 dispersion, which generally shows opposite behaviour to that of thermal indicators; i.e. improved thermal comfort brings deterioration of PM2.5 concentrations. © 2021 Michal Belda et al.