Grödig is located south of the Salzburg city limits in the historic Flachgau region, near the border with Bavaria, Germany. The market town is situated on the southwestern edge of the Salzburg basin at the foot of the Berchtesgaden Alps. The peaks of the nearby Untersberg massif as well as its numerous pit caves are a protected area and a popular destination for daytrippers. A cable car leads up to the Geiereck spur at an altitude of 1,776 m (5,827 ft). The market town joined the European Climate Alliance in 1990.