Lauschied lies on a hill in the Glan-Nahe triangle, the wedge-shaped tongue of land where the former empties into the latter.
Clockwise from the north, Lauschied's neighbours are the municipality of Meddersheim, the town of Bad Sobernheim and the municipalities of Abtweiler, Raumbach (although it meets this at only one point), Desloch, Jeckenbach, Hundsbach and Bärweiler, all of which likewise lie within the Bad Kreuznach district.