Situated in northern Madhya Pradesh, India, Chanderi lies on the 24°42′ North latitude and 78°8′ East longitude. The terrain is rugged and undulating, and the town itself lies on the edge of the Malwa plateau at 360 metres above sea level.
It is located in a trough surrounded by hills of the Vindhyachal Range that divides the Gangetic Plains of north India from central India.
The Betwa River flows close to Chanderi, as does its tributary, the Urr. The Chevli, a further tributary of the Urr, flows through the town. Earlier part of the Guna District, it has now been included within the territory of the Ashoknagar District.
