Franzensfeste is located in the southern Wipptal valley on the Eisack river, about south of Sterzing and north of Brixen. The settlement is situated on the western side of the valley, at the Sachsenklemme narrow where it is only a few hundred meters wide, along with the Brenner Railway line and the state road SS12 while the Autostrada A22 (Brenner Highway), running elevated on the same side, pass through the lake in its northern part entering a tunnel on the opposite side; the state road cross than the Eisack river nearby the railway station due north. The valley is confined by the Zillertal Alps in the northeast and the Sarntal Alps in the southwest, rising up to the Tagewaldhorn peak at .