Territory of the country covers the area of 86 600 km². It is located on the southern slopes of the Caucasus. Densely inhabited part of the country extends around the downstream of the Kura River that drains into the Caspian Sea, which washes the entire eastern part of Azerbaijan. The country borders Russia to the north, Armenia and Georgia to the west, and Iran to the south. Nakhchivan Autonomous Republic is enclosed between Armenia, Iran and Turkey. The capital is Baku city, and another important city is Ganja.

The question whether Azerbaijan can be considered a transcontinental country lying on both sides of Asia and Europe is controversial. Having regarded the Kuma-Manych Depression as the natural boundary between Europe and Asia, the whole territory of Azerbaijan, in fact, would be on the Asian continent. If this border is along the Caucasian watershed or the Kura River and Rioni River, then a part of the Azerbaijani territory would be in Europe.

Azerbaijan is mostly mountainous.