The village is located at the southern end of the lake Eidfjordvatnet, about 7 kilometres (4.3 mi) south of the municipal centre of Eidfjord.

Øvre Eidfjord sits along the Bjoreio River, at the entrance to the Måbødalen valley.

The Norwegian National Road 7 runs through Øvre Eidfjord, through the Måbødalen valley, past the famous Vøringfossen waterfall, and then continues on, over the Hardangervidda plateau to Eastern Norway.

There was a primary school in Øvre Eidfjord until 2005 when it was closed.

Since then, local students have had to travel 7 kilometres (4.3 mi) to Eidfjord for their schooling.