Cities today face the dual challenge of increasing vulnerability to disruptions and a growing demand for improved quality of life. By prioritising happiness and resilience, cities can create sustainable environments that promote health, social cohesion, and adaptability to various stresses and withstand economic, social, and environmental shocks while fostering the well-being, inclusivity, and quality of life of all residents. This study aims to understand what indicators most impact urban resilience and happiness through a systematic literature review. Our analysis uncovered that factors with a dual impact on improving urban resilience and happiness fit into the following categories: individual, social, socio-economic, environmental, infrastructural, technological, resource-based, place-based, urban planning, and housing-related. This study provided a comprehensive understanding of how urban design and policies can enhance both resilience and happiness in cities. Policymakers and planners can adapt and use the identified indicators and strategies to enhance citizens’ happiness and create a resilient community in various contexts and under diverse stressors.