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The city is located west of the Klagenfurt Basin at the confluence of the Drau and the Gail Rivers. Nearby countries are Slovenia with a direct line to the border of 11 km (6.8 mi) and Italy with a distance of 14.5 km (9 mi) respectively. Slovenia could be accessed via the Karawanken Autobahn (A11) and the Karawanken Tunnel, Italy by the Süd Autobahn (A2).
The municipal area borders on or surrounds several lakes, including Lake Ossiach, Lake Faak, Silbersee, Vassacher See, Magdalensee, and St. Leonharder See.
Villach is surrounded by mountains of the Alps which are used for skiing in winter and hiking in summer.