Nicaragua occupies a landmass of 130,967 km2 (50,567 sq mi), comparable to that of Greece or the state of Alabama. It lies between latitudes 10° and 15°N, and longitudes 82° and 88°W.

Shaded relief map of Nicaragua

Nearly one fifth of the territory is designated as protected areas like national parks, nature reserves, and biological reserves.

The country is bordered by Honduras to the north, the Caribbean to the east, Costa Rica to the south, and the Pacific Ocean to the west.

Geophysically, Nicaragua is surrounded by the Caribbean Plate, an oceanic tectonic plate underlying Central America and the Cocos Plate. Since Central America is a major subduction zone, Nicaragua hosts most of the Central American Volcanic Arc.

Nicaragua has three distinct geographical regions: the Pacific Lowlands, fertile valleys which the Spanish colonists settled, the Amerrisque Mountains (North-Central Highlands), and the Mosquito Coast (Atlantic Lowlands). The low plains of the Atlantic Coast are 60 miles wide in areas. They have long been exploited for their natural resources.

Nicaragua is subject to destructive earthquakes, volcanoes, landslides, and occasionally severe hurricanes. It currently faces deforestation, soil erosion, and water pollution. It is a party to the United Nations Framework Convention on Climate Change, the Climate Change-Kyoto Protocol, the Nuclear Test Ban, and the Ozone Layer Protection, and has signed but not ratified the Law of the Sea.