This paper discusses how universities could explore and exploit the city as learning environment, a place full of interesting research questions, real-life problems waiting to be solved and challenges to be addressed. We argue how academic research and education programmes can be systematically linked to real-life problems and challenges in the city, with benefits for students, researchers, and city stakeholders. The paper provides some examples of universities that have managed to do so, and ends with a set of conditions and dilemmas.