The rapid growth of urban populations has placed increasing pressure on the built environment, resulting in a reduction of outdoor spaces and a decline in environmental quality. These challenges have intensified the need for outdoor thermal comfort studies to better address the consequences of urbanization and climate change. Objectives: This study aims to critically review the recent literature (from the last four years) on outdoor thermal comfort in urban environments. It examines both micro-scale (qualitative) and macro-scale (quantitative) approaches, identifies key research gaps, and suggests future research directions, with emphasis on standardizing thermal indices and integrating psychological dimensions of comfort. A systematic review was conducted using major academic databases. After applying inclusion and exclusion criteria through title, abstract, and full-text screening, 50 relevant peer-reviewed articles were selected. These were analyzed based on scope, methodologies, indices used, and geographical distribution. The review identified a lack of consensus on thermal comfort indices across climate zones, and limited integration of psychological and adaptive factors. Moreover, research efforts are unevenly distributed, with some regions receiving disproportionate attention while others remain understudied. There is a critical need for standardizing thermal comfort metrics and defining climate-specific neutral value ranges. Future research should adopt interdisciplinary approaches, combining environmental and psychological insights to improve understanding and design of thermally comfortable urban spaces. This review serves as a reference for academics, designers, and planners seeking to enhance thermal comfort in increasingly dense urban environments. The review underscores that standardized cooling strategies without contextual adaptation to local climate, urban morphology, and materials show limited efficacy, urging region-specific solutions.