The municipality of Plav is located in the southeastern part of Montenegro, right next to the border with Albania and Kosovo, occupying an area of 329 km2. The territory of the municipality extends along the headwaters of the Lim and Pećka Bistrica, between the Prokletija Mountains, where the Dinaric Mountains reach their peak. In the south and southwest, towards Albania, the territory of the municipality follows the mountain heights, while in the east it borders with Kosovo. The territorial range of the municipality extends in the northeast-southwest direction, including the central part of the Prokletije massif known for its diverse relief with numerous heights, gorges, steep slopes and other natural phenomena.
The town of Plav is concentrated around Lake Plav and the river Lim. The municipality of Plav includes 14 settlements: Bogajići, Brezojevica, Velika, Vojno Selo, Gornja Rženica, Đurička Rijeka, Mašnica, Desni Meteh, Murino, Novšići, Plav, Prnjavor, Skić and Hoti. According to functional criteria, two settlements, Plav and Murino, are distinguished, with dominant functions in the economy, services and communications.
The geographical coordinates are 42° 35′ 29” N and 19° 56′ 26” E. The territory of the municipality extends in a northeast-southwest direction. It covers the central part of the Prokletije massif, which is characterized by its uneven relief, numerous heights, gorges, steep slopes and other natural phenomena.
The central part of the Municipality is the northeastern part of the Plav - Gusinj basin, which is naturally open to the north through the Lim Valley. The entire area is slightly inclined towards the north, where all the river courses lead, as well as the most important road through the Lima valley.