Bohinjska Bistrica lies in the valley between the river Sava Bohinjka, the hills Dobrava and Ajdovski gradec, and the streams Bistrica and Belica. The main road leading to the railway station divides the settlement into the upper and lower part Zgornja vas and Spodnja vas.

Bohinjska Bistrica is an important tourist destination and a good starting point for trips to Črna prst, Vogel, Komna and Ratitovec. It also has a ski centre at Kobla.

The town is served by Bohinjska Bistrica railway station, with direct trains several times a day to Jesenice and Nova Gorica. In addition, regular buses travel directly to Ljubljana.