The town is situated in the easternmost part of Slovenia, within a few kilometres of the Slovene-Hungarian and Slovene-Croatian borders. Slovenians, Hungarians and other nationalities live side by side in the region. Besides the Slovene language, Hungarian is also an official language.
The town lies right on the transit road running from the Styrian-basin toward the Hungarian plain. The medieval town did not evolve from the original settlement but it was a new foundation on one of the islands of the Mura River. Similarly to Lenti the town is famous for its wonderful wine-districts and thermal bath.
The town is situated next to the River Mura, 3 km from the Hungarian border. Four places belong to it administratively: Bányavár, Lapány, Muraréthát and Muraszentkereszt.