Cities interact with the atmosphere over a wide range of scales from the large-scale processes, which have a direct impact on global climate change, to smaller scales, ranging from the conurbation itself to individual buildings. The review presented in this paper analyzes some of the ways in which cities influence atmospheric thermodynamics and airborne pollutant transport. We present the main physical processes that characterize the urban local meteorology (the urban microclimate) and air pollution. We focus on small-scale impacts, including the urban heat island and its causes. The impact on the lower atmosphere over conurbations, air pollution in cities, and the effect on meteorological processes are discussed. An overview of the recent principal advances in urban climatology and air quality modeling in atmospheric numerical models is also presented.