The village lies in the Leutaschtal, a high valley that extends for over 16 kilometres from the Hohe Munde to the northeast along the Wetterstein Mountains and ends at the Leutasch Gorge, which forms the border with Germany at Mittenwald. The valley is framed by other prominent peaks such as the Hochwanner, the Dreitorspitze and the Arnspitze. The valley is a large rock basin formed by glaciers of the Ice Age and filled with gravel and lake sediments. The Leutascher Ache river flows through it. The Gaistal valley leads between the Wetterstein and Mieming Chain to the west to the Ehrwald Alm.