It is situated on the river Ruhr, approx. 15 km east of Meschede. It is bordered by Arnsberg Forest Nature Park, on the northern fringe of the Rothaargebirge. The town's setting is dominated by heavily wooded ridges and valleys formed by the Ruhr and three of its tributaries.
A notable feature situated within the town's limits are the Bruchhauser Steine, four large porphyry rocks located on a mountain near the village of Bruchhausen.
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Olsberg, Hochsauerlandkreis, Germany