The municipality is located in the Upper Sava Valley, a typical Alpine valley. Located at the far northwest of Slovenia where the borders of Slovenia, Austria, and Italy meet, the valley is embraced on the north and south by the peaks of the Karawanks and the Julian Alps. In the east its border runs just below the town of Jesenice, where the valley opens up towards the Radovljica Valley, extending in the west along the watershed between the Sava and Slizza rivers, just west of Rateče. In the north the Wurzenpass at Podkoren leads to Arnoldstein in Carinthia, in the south the Vršič Pass connects it with Trenta in the Slovenian Littoral region.