Bischofsgrün is situated within the Fichtelgebirge mountain range between the range's two largest mountains; Schneeberg (1051 m) and the Ochsenkopf (1024 m). The Ochsenkopf North Chairlift starts in Bischofsgrün and is one of two chair lifts that climb to the summit of the Ochsenkopf, making the town an ideal location for outdoor recreation year round. During the winter months tourists flock to the area for alpine skiing, cross country skiing, and sledding. During the summer, mountain biking and hiking are popular.