Schwanden bei Brienz lies in the Bernese Oberland south of the Emmental Alps, which form the natural border between the Bernese Oberland and Central Switzerland. The northern border of the municipality is formed by the peaks of the Brienzer Rothorn and Arnihaaggen. The three streams Glyssibach, Schwanderbach, and Lammbach flow off the slopes of these mountains through the town and lead soon thereafter to Lake Brienz. In the past the streams were dangerous, as they were prone to sudden onrushes of water. In order to reduce the danger, walls have been built to contain it in certain areas.