Drvar is a town and municipality in western Bosnia and Herzegovina, located on the road between Bosansko Grahovo and Bosanski Petrovac, also near Glamoč. It is administratively part of Canton 10 of the Federation. Drvar lies in the vast valley, the southeastern part of Bosanska Krajina, between the Osječenica, Klekovača, Vijenca and Šator mountains of the Dinaric Alps. The southeast side of boundary extends from the Šator over Jadovnika, Uilice and descends to Lipovo and the Una River.
This extremely hilly region comprising the town of Drvar and the numerous outlying villages covers approximately 1030 square kilometers/640 square miles. The town itself is mainly spread out from the left side of the river Unac, and its elevation is approximately 480 meters/1574 feet.