The Diskit monastery is situated on the hill, just above the flood plains of the Shyok River, on its right bank in the Diskit village () in Nubra Valley. Nubra River is a tributary of the Shyok River, which flows parallel to the Indus River on the northern side of the Ladakh Range. Since the valley is at lower elevation, it has a mild climate. This climatic condition has created lush vegetation in the valley and the valley is, therefore, called the Orchard of Ladakh. The valley was part of the caravan route between Tibet and China. It has various trekking sites, along the countryside. The valley is also the natural home of the double-humped Bactrian camel. It is located trans Leh, beyond the snow-clad Khardung La pass. Since the snow clad mountains become unpassable many times during winter, Diskit village and the monastery in the valley have become the congregation centre for people of the region of the valley. Diskit is the headquarters of the Nubra Valley and thus has lot of government offices with basic facilities. It is also connected by road with Leh.