The Steinwald lies south of the Upper Franconian county town of Marktredwitz and north of Erbendorf in the district of Tirschenreuth. The Steinwald is separated from the Fichtelgebirge to the northwest by the Waldershof trough (Waldershofer Senke) and from the Upper Palatine Forest to the southeast by the Waldnaab-Wondreb-trough.