Global warming has adversely affected the building sector in many countries. Energy retrofit strategies for existing buildings have been developed to combat this issue, including advanced facade system coatings. This study examines how advanced coatings such as PCMs, thermochromics, and cool materials can be effectively used to enhance the thermal behavior and energy performance of existing facades in hot climates. It aims to suggest the optimal combinations of such materials for the façade retrofit design of a typical low-rise residential building in hot climates. Using optimization, Design Builder software is utilized to assess the thermal behavior and energy performance of a combination of advanced materials used. The results revealed that the arrangement of exterior wall layers, thickness and placement of thermal insulation, and the material used in the façade outer layer have a significant effect on the annual energy consumption. Applying coatings with high reflective values as an outer layer of facades can reduce monthly surface temperatures by 2.62 °C in summer and annual cooling loads by 13.78 %. Using PCM coating as an inner layer of the façade improves indoor temperatures by 1.83 °C during different seasons and decreases annual cooling demands by 13.23 %. Finally, the optimal combination of such materials for the energy retrofit design of a typical residential building with three conventional façades has been defined.