Diu is located on a small island in the Arabian Sea, separated from the Kathiawar peninsula of mainland Gujarat by a narrow, swampy, tidal creek. The administrative district also encompasses a small mainland enclave called Ghoghla, which stretches out as a peninsula to the east of the island.
The island's physical geography is defined by its stunning coastline, which features a mix of golden sandy beaches, rocky outcrops, and quiet coves. The interior of the island is relatively barren and scrubby, characterized by scattered palm trees, Hokka trees (a type of branching palm native to the region but introduced from Africa), and low-lying vegetation. The surrounding waters of the Arabian Sea dictate much of the local environment, providing both the town's cooling breezes and its rich marine biodiversity.
