Machu Picchu lies in the southern hemisphere, some 13 degrees south of the equator. It is 80 kilometers northwest of Cusco, on the crest of the mountain Machu Picchu, located about 2,450 metres (8,040 ft) above mean sea level, over 1,000 metres (3,300 ft) lower than Cusco, which has an altitude of 3,600 metres (11,800 ft). As such, it had a milder climate than the Inca capital. It is one of the most important archaeological sites in South America, one of the most visited tourist attractions in all of Latin America and is the most visited tourist attraction in Peru.

The year at Machu Picchu is divided between wet and dry seasons, with the majority of annual rain falling from October through to April although it can rain at any time of the year.

Machu Picchu is situated above a loop of the Urubamba River, which surrounds the site on three sides, with cliffs dropping vertically for 450 metres (1,480 ft) to the river at their base. The area is subject to morning mists rising from the river. The location of the city was a military secret, and its deep precipices and mountains provide excellent natural defenses. The Inca Bridge, an Inca rope bridge, across the Urubamba River in the Pongo de Mainique, provided a secret entrance for the Inca army. Another Inca bridge to the west of Machu Picchu, the tree-trunk bridge, at a location where a gap occurs in the cliff that measures 6 metres (20 ft), could be bridged by two tree trunks. If the trees were removed, it would leave a 570 metres (1,870 ft) fall to the base of the cliffs, also discouraging invaders.

The city sits in a saddle between the two mountains Machu Picchu and Huayna Picchu, with a commanding view down two valleys and a nearly impassable mountain at its back. It has a water supply from springs that cannot be blocked easily, and enough land to grow food for about four times as many people as ever lived there. The hillsides leading to it have been terraced, not only to provide more farmland to grow crops, but to steepen the slopes which invaders would have to ascend. The terraces also helped reduce soil erosion and protected against landslides. There are two high-altitude routes from Machu Picchu across the mountains back to Cusco, one through the sun gate, and the other across the Inca bridge. Both could be easily blocked, should invaders approach along them. Regardless of its original purpose, it is strategically located and readily defended.

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