Manchester is located in north-central Bennington County, lying between the Green Mountains to the east and the Taconic Range to the west. Equinox Mountain, the highest summit in the Taconics, with an elevation of , is in the western part of the town. Manchester is drained by the Batten Kill, Lye Brook, Munson Brook, Bromley Brook, and Bourn Brook. The Lye Brook Falls Hiking Trail which leads to one of the highest waterfalls in Vermont is a popular local attraction.