Lærdal is located southeast of the Sognefjorden and east of the Aurlandsfjorden. The municipality is centered on the Lærdalselvi River with the Filefjell and Hemsedalsfjell mountain ranges on its east. Lærdal is bordered in Vestland county by the municipality of Aurland to the southwest, Sogndal to the northwest, and Årdal to the north. It is also bordered on the east by Vang (Innlandet county) and Hemsedal (Viken county), and in the south by Ål and Hol (both in Viken county).