Viviparity has evolved ~120 times across squamate reptiles, and has facilitated the colonization of cold habitats, where oviparous species are scarce or absent. In turn, the ecological opportunity furnished by such colonization is predicted to accelerate phenotypic diversification and reconfigure phenotypic diversity. Yet, whether independent transitions to viviparity are associated with predictable shifts in the tempo and mode of phenotypic evolution remains unclear. Here, we investigated the association between live birth and rates and patterns of body size evolution in Liolaemus lizards, the most species-rich tetrapod genus from temperate regions. We find that viviparous species exhibit two-fold faster rates of body size evolution and ~20% larger optimal body sizes than their oviparous relatives. By exploring the association between live birth and different abiotic and biotic features through a causal modeling approach, we find that viviparity indirectly influences body size evolution in Liolaemus through shifts in thermal environment and structural microhabitat use. The catalyzing influence of viviparity on phenotypic evolution arises because it potentiates access to otherwise inaccessible sources of ecological opportunity. Accordingly, niche partitioning and release from antagonists in novel habitats likely favors rapid body size evolution and larger sizes in viviparous species, an outcome potentially repeated across the tree of life.