The aggravating impacts of the urban heat island phenomenon in Philippine cities has motivated planners to utilize urban green and blue spaces as a potential mitigation strategy. This study aims to assess the cooling effect (CE), heat reduction (HR), and energy saving potential (ESP) of trees and water along the Iloilo River Esplanade located in Iloilo City, Philippines. Microclimate modelling and simulation during summertime were performed using ENVI-met software and validated using field observations. Results of the study show that the urban park can provide a maximum CE of 2.63°C at 3:00 PM near the southern edge of the river, which is equivalent to a HR of 13,564 J and an ESP of 1.09 × 10−2 kWh. Meanwhile, a temperature increase of up to 0.16°C can be observed at night due to the nocturnal warming effect of water. In terms of spatial distribution, CE, HR, and ESP tend to gradually decrease as the horizontal distance from the park and altitude increases. Moreover, wind direction may also increase the scale and intensity of CE downwind, but it has an opposite effect in areas upwind.