Covering an area of 20,600 square km, Lijiang is located in northwest Yunnan Province. Its capital in Lijiang County is 527 km away from the city of Kunming, the capital of Yunnan Province. Lijiang has a large area of mountains, accounting for 95 percent of the total area. Because of its position on a plateau, Lijiang boasts strong sunlight. Its average altitude is 2,400 meters and only 5 percent of its territory consists of plains. Two great mountain ranges, Yulong Snow Mountain and Laojun Mountain, lie in Lijiang. Shanzidou, the peak of Yulong Snow Mountain is the highest point, which is 5,596 meters above sea level. It is covered with snow all year round. In addition, two great river systems; Jinsha River and Lancang River, run through Lijiang.

Located in region of low latitude, the Lijiang region features a South Asian monsoon climate with clear distinction of droughty and rainy seasons. The droughty season lasts from November every year to April the next year and the rest time consists of the rainy season. The average annual rainfall here is around 1,000 mm. The region's average temperature is 12.6. As the temperature varies slightly, there is no obvious seasonal change and the region is as warm as spring all year round. Tourists visiting Lijiang in July and August should bring rainwear. Lijiang is home to ethnic minorities such as the Naxi, Bai, Pumi, Tibetan, Lisu, Yi and Miao. It has a total population of 1.04 million, 58 percent of whom are people from ethnic minorities. Lijiang boasts the lifestyles of various ethnic groups.