Szczawnica is situated in the picturesque valley of the Grajcarek, which is one of the tributaries of the River Dunajec. The valley separates the Male Pieniny Ridge from the Beskid Sadecki Mountain Range. The resort itself lies at 500 meters above the see level. The unique situation of the valley is the source of its mild microclimate created by forested hills, plentiful sunshine, little precipitation, and the fresh and unpolluted air.

What is more, Szczawnica is set in the picturesque landscape of the Pieniny National Park and the Dunajec Gorge. To the north, there is the Radziejowa Massif (984 m) and to the south, the Male Pieniny Range with the peaks of Rabsztyn (847 m) and Wysoka (1052 m). The valley opens towards the Pieniny Range with the famous peaks of Sokolica [the Falcon Mountain] (747 m) and Trzy Korony [the Three Crowns] (982m). All this makes Szczawnica one of the most attractive mountain resorts in Poland.