Synthesizing large-scale, explorable, and geometrically accurate 3D urban scenes is a challenging yet valuable task for immersive and embodied applications. The challenge lies in the lack of large-scale and high-quality real-world 3D scans for training generalizable generative models. In this paper, we take an alternative route to create large-scale 3D scenes by leveraging readily available satellite imagery for realistic coarse geometry and open-domain diffusion models for high-quality close-up appearance synthesis. We propose Skyfall-GS, a novel hybrid framework that synthesizes immersive city-block scale 3D urban scenes by combining satellite reconstruction with diffusion refinement, eliminating the need for costly 3D annotations, and also featuring real-time, immersive 3D exploration. We tailor a curriculum-driven iterative refinement strategy to progressively enhance geometric completeness and photorealistic texture. Extensive experiments demonstrate that Skyfall-GS provides improved cross-view consistent geometry and more realistic textures compared to state-of-the-art approaches. Project page: https://skyfall-gs.jayinnn.dev/