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Municipality of Lovinac is placed at the south of Lika, connecting the triangle Gospić-Udbina-Gračac.

The area that is traditionally called – the Lovinac area – (according to the largest locality, Lovinac) corresponds with the area of municipality today. It is surounded with the highlands of Lika at the northeast, and the mountain range Resnik at the southeast. Geographical border towards the submediterranian area on the southwest side is Velebit. The importance of geographical location of the municipality is its position at the edge of Lika field which is naturally associated with the Gračac field.

Municipality of Lovinac, its mountain range Velebit, lover height above sea level (570-600 meters) and porosity are the advantages of this part of the region both in social and economic terms. Geotraffical position of the municipality arises from its location at the Dinara mountain area which is the shortest and most convenient traffic connection of Dalmatia with the northwest Croatia (and Central Europe).