The paper discusses the suitability of the sunken courtyard concept in the desert climate using Kuwait as a case study. It investigates three issues related to the concept: its ability to modify the harsh climate and to reduce the energy consumption, its construction costs compared to aboveground building, and the occupants' attitude towards living underground. The results are shown to be all positive and will be significant to the policy-makers, designers, and homeowners. (C) 2001 Elsevier Science B.V. All rights reserved.