Packwood is located at the intersection of US Highway 12 and Gifford Pinchot National Forest Road 52 (Skate Creek Road). It is located between Mount Rainier National Park to the north and Mt. St. Helens National Volcanic Monument to the south. Tatoosh Wilderness, Goat Rocks Wilderness, and William O. Douglas Wilderness are to the north, southeast, and northeast respectively, with the Gifford Pinchot National Forest as a buffer in all directions. Packwood is located in the upper Cowlitz valley, just downstream of the confluence of the Muddy and Clear forks of the Cowlitz. The White Pass Ski Area and Cascade Crest demark the eastern edge of the Packwood area, the town of Randle the west, and large expanses of forest, wilderness, and parkland the north and south.