Bärenbach lies on the Großbach, a short way upstream from where it empties into the river Nahe, and 47.1% of the municipal area is wooded.
Clockwise from the north, Bärenbach's neighbours are the town of Kirn, the municipality of Heimweiler (both in the Bad Kreuznach district), the town of Idar-Oberstein, the municipality of Fischbach and the municipality of Bergen (all three in the neighbouring Birkenfeld district).