Multi-unit residential buildings (MURBs) have become increasingly prevalent in urban areas to meet the rising demands of growing populations and optimize limited urban space. However, these structures are also significant consumer of energy and natural resources. Likewise, tackling carbon footprint of new and existing MURBs is essential for a sustainable future. The integration of balconies within MURBs presents a promising avenue to reduce operational energy, and increase well-being of the occupants. When thoughtfully designed, balconies in cold climates can amplify solar gains, while in warmer climates they can serve as spaces capable of cooling internal areas. This research offers an overview of the impact of balconies on MURBs’ energy efficiency through a comprehensive literature review and aims to provide valuable insights for researchers and stakeholders involved in building construction.