Kullu is centrally located in the Kullu Valley, a broad, open valley formed by the Beas River. The town sits on the right bank of the river, surrounded by the towering peaks of the Pir Panjal, the Lower Himalayan, and the Great Himalayan ranges.
The physical geography is defined by a steep gradient of terrain, rising from the riverbed into terraced agricultural slopes and ultimately dense alpine forests. The valley is richly forested with pine, deodar (Himalayan cedar), oak, and rhododendron trees. Natural resources include abundant fresh water from snow-fed rivers and a highly fertile soil suited for temperate fruit cultivation. The region is seismically active, falling in a high-damage risk earthquake zone (Zone IV/V in India).

