This paper examines the effect of the physical environment (PE) of urban neighbourhoods on the character of youths. The outdoor features of a neighbourhood are often related to the physical environment and social interaction among the people living in the urban community. This study was done to gather data through focus group discussions, observations and interviews with youths, parents and stakeholders to examine the effect of PE on the character of youths. The results showed that outdoor features do influence the character of youths in an urban neighbourhood community. Neighbourhood community should play an important role in providing youths with proper outdoor features and providing opportunities for them to become more productive and innovative.