Located in the rugged Cordillera mountains of northern Luzon, Banaue is 1500m above sea level. It lies atop Mt. Amuyao, the highest peak in the area. The terraces cover 10,360 square kilometers, including the prime areas of Banaue and Batad.

Weather, like the rest of Luzon, alternated between a rainy and dry season, usually between November and April. Temperatures are cool year-round due to the high elevation.