Abstract The objective of this study is to investigate the effects of urban land on the climate in Europe on local and regional scales. Effects of urban land cover on the climate are isolated using the fifth-generation Pennsylvania State University–National Center for Atmospheric Research (PSU–NCAR) Mesoscale Model (MM5) with a modified land surface scheme based on the Town Energy Budget model. Two model scenarios represent responses of climate to different states of urbanization in Europe: 1) no urban areas and 2) urban land in the actual state in the beginning of the twenty-first century. By comparing the simulations of these contrasting scenarios, spatial differences in near-surface temperature and precipitation are quantified. Simulated near-surface temperatures and an urban heat island for January and July over a period of 6 yr (2000–05) agree well with corresponding measurements at selected urban areas. The conversion of rural to urban land results in statistically significant changes to precipitation and near-surface temperature over areas of the land cover perturbations. The diurnal temperature range in urbanized regions was reduced on average by 1.26° ± 0.71°C in summer and by 0.73° ± 00.54°C in winter. Inclusion of urban areas results in an increase of urban precipitation in winter (0.09 ± 00.16 mm day−1) and a precipitation reduction in summer (−0.05 ± 0.22 mm day−1).