In silico investigation of the effects of a molecule’s framework and surroundings on its nonlinear optical (NLO) response is still an active topic of study in the fields of photonics and optoelectronics. NLO materials play a crucial role in modern photonics and optoelectronic technologies. Presented here is a comprehensive theoretical analysis of the structural, topological, and NLO features of 1-methylurea butanedioic acid (MUBA) alongside solvent effects (water, DMSO, and benzene) using the DFT method at the B3LYP(D4)/6–311++G(d,p) level. Geometric and infrared parameters were calculated and compared with experimental values. The analysis using atoms in molecules (AIM) and the independent gradient model (IGM) reveals the presence of two noncovalent intermolecular interactions: N4–H16⋯O12 and O6–H25⋯O3, which stabilize the crystal structure. The natural bond orbital (NBO) analysis reveals that the LP(1)N4 ⟶ π∗(C2-O3) interaction is the most stabilizing and is enhanced in solvent environments. NLO data show that the first (βtot) and second (γ) hyperpolarizability values of MUBA are approximately 0.6–1.1 and 8.3–17.0 times higher than those of urea. In addition, the quadratic and cubic responses of MUBA are significantly reduced and increased, respectively, in solvent environments. Based on its NLO susceptibilities, MUBA exhibits SHG, EOPE, OKE, and EFISHG properties, suggesting its potential application in the production of optoelectronic devices and optical limiting. This study enhances our understanding of the factors influencing the NLO behaviour of organic crystals, providing valuable insights for designing materials with enhanced NLO characteristics. The implications extend to industries such as telecommunications and computing, where faster data transmission rates are in high demand.