Part of the northern Harz foothills, the hill is located north of the Harz Nature Park at the rim of the Harz National Park. The Butterberg is part of the Harz - Brunswick Land - Eastphalia National Geopark; its steeply inclined strata belong to the Northern Harz Boundary Fault. In the west, the hill is bounded by the Radau river and the parallel Bundesstraße 4 highway. The mountain-ridge path offers scenic views to the Harz mountains and over the North German Plain.