The metaverse aims to merge the virtual and real worlds. The target is to generate a virtual community where social components play a crucial role and combine different areas such as entertainment, work, shopping, and services. This idea is explicitly appealing in the context of smart cities. The metaverse offers digitalization approaches and can strengthen citizens’ social community. While the existing literature covers the exemplary potential of smart city metaverse applications, this research aims to provide a comprehensive overview of the potential and already implemented metaverse applications in the context of cities and municipalities. In addition, challenges related to these applications are identified. The research combines literature reviews and expert interviews to ensure a broad overview. Forty-eight smart city metaverse applications from eleven areas were identified, and actual projects from eleven cities demonstrate the current state of development. Still, further research should evaluate the benefits of the various applications and find strategies to overcome the identified challenges.