Oberstdorf, the southernmost municipality in Germany, is located in the Oberstdorf Basin in the Iller-Valley, in the Allgäu Alps. The big river Iller origin is near Oberstdorf.

The climatic health and Kneipp health resort, with its alpine ski areas, cross-country ski trails, ice rink and ski jumping hills and ski flying hill, serves as a winter sports area and is also a popular destination for mountaineers.