The quality of outdoor space is becoming increasingly important with the growing rate of urbanization. Visual, acoustic, and thermal balance degradation are all negative impacts associated with outdoor comfort in dense urban fabrics. Urban morphology thus needs assessment and optimization to ensure favorable outdoor thermal comfort (OTC). This study aims to evaluate the thermal performance of streets in residential zones of Liverpool, NSW, Australia, and tries to improve their comfort index (Physiological Equivalent Temperature) to reveal optimum urban configurations. This evaluation is done by investigating the following urban design factors affecting OTC using computational simulation techniques: street orientation, aspect ratio, building typology, and surface coverage. Our findings reveal that street canyon orientation is the most influential factor (46.42%), followed by aspect ratio (30.59%). Among the influential meteorological parameters (air temperature, wind speed, humidity and solar radiation), wind velocity had the most significant impact on the thermal comfort of the outdoor spaces in this coastal region, which typically experiences intense airflow. The results of our analysis can be utilized by multiple stakeholders, allowing them to understand and extract the most vital design factors which contextually influence the thermal comfort of outdoor spaces. Outdoor thermal comfort has a direct effect on the health and wellbeing of occupants of outdoor spaces.