Urban happiness, an emerging concept in urban planning, highlights the role of cities in shaping individuals’ experiences and happiness. Cities compete to bring happiness to their residents; however, achieving urban happiness requires a specific understanding of urban factors that contribute to individuals’ happiness. This study concentrates on the significant role of urban aesthetic indicators in inducing individual happiness. Despite the absence of Iraqi cities from the Happy City Index 2024, citizens in Iraqi cities often reported being happy according to the Global Happiness and Hope Index. This indicates a discrepancy between happiness rankings among the least happy cities in the world and the actual reported happiness and shows some potential for improving these levels. The research problem stated the inadequate available knowledge about the concept of urban happiness and the impact of urban aesthetics indicators on individuals’ happiness. The research proposes a hypothesis that urban aesthetics in cities can enhance individuals’ happiness and achieve urban happiness. By exploring the concept and theories of urban happiness, urban aesthetics, and their impact on well-being and happiness, then comparing the urban elements of al-Kadhmiya and al-Adhamiya cities to detect urban happiness indicators, the study aims to determine the concept and theories of urban happiness and the impact of urban indicators in enhancing happiness. It also seeks to develop an urban happiness model that can be used by urban planners for future interventions, focusing on the role of urban aesthetics that contribute to urban happiness. Using descriptive and comparative analysis approaches in case studies, the findings support the hypothesis, stating the significant impact of urban aesthetics on achieving urban happiness and presenting al-Kadhmiya City as the best model for urban happiness. Moreover, both cities hold the potential for improving happiness ranking levels. However, a multifaced approach is needed to enhance the happiness ranking levels of Iraqi cities.