The rapid oasis expansion and urbanization that occurred in Xinjiang province (China) in the last decades have greatly modified the land surface energy balance and influenced the local circulation under the arid mountains-plain background system. In this study, we first evaluated the ALARO regional climate model coupled to the land surface scheme SURFEX at 4 km resolution using 53 national climatological stations and 5 automatic weather stations. We found that the model correctly simulates daily and hourly variation of 2mtemperature and relative humidity. A 4-day clear sky period has been chosen to study both local atmospheric circulations and their mutual interaction. Observations and simulations both show that a low-level divergence over oasis appears between 19:00 and 21:00 Beijing Time when the background mountain-plain wind system is weak. The model simulates a synergistic interaction between the oasis-desert breeze and urban-rural breeze from 16:00 until 22:00 with a maximum effect at 20:00 when the downdraft over oasis (updraft over urban) areas increases by 0.8 (0.4) Pa/s. The results show that the oasis expansion decreases the nocturnal urban heat island in the city of Urumqi by 0.8 °C, while the impact of urban expansion on the oasis cold island is negligible. © 2020 by the authors.