After 1880, Frederick Allardt and Bruno Gernt brought a group of Germans from Michigan to settle in the area.

[6] According to the United States Census Bureau, the city has a total area of 3.8 square miles (9.8 km2), all of it land.

The city is situated atop the western Cumberland Plateau in a relatively broad area surrounded by rugged hills.

Tennessee State Route 52 passes roughly west-to-east through the city, connecting it with Jamestown to the northwest and Rugby to the east.

Colditz Cove State Natural Area, best known for the 60-foot (18 m) Northrup Falls, lies just southeast of Allardt.

[7] The Big South Fork National River and Recreation Area lies a few miles to the northeast.