Courtyards have been traditionally used as a passive design strategy in desert climates. However, few studies have quantified the thermal performance of this building archetype. This paper explored the indoor and outdoor thermal conditions of a typical courtyard house in Iran. The study was performed in two phases. The first phase showed the effect of the position of the zones located in four sides of the courtyard on their indoor energy use and indoor thermal comfort. The results showed that the east and west sides of the courtyard require the highest cooling demand due to the solar radiation in summer time. Furthermore, maximum discomfort hours occurred in the east zone. In the second phase, hourly air temperature inside and outside of the courtyard were compared during the longest day of the year (21st of June). The results showed that inside of the courtyard was 1.2 °C cooler than the outside on average. Moreover, it was observed that the temperature fluctuations outside of the courtyard were higher than the inside. To sum up, the results showed that courtyards can provide a cooler microclimate in summer time.