It is located on the northern shore of Milne Bay and the township is conveniently situated within the Alotau Urban LLG.

The vibrant streets of the town come alive with an array of different cultures, with each group celebrating their traditions with displays of dancing, singing, music and craftsmanship.

Visitors to Alotau Town can experience a unique blend of cultural practices and witness age-old customs that have been passed down through generations.

This much welcomed visits usually affords many of the township's local SME's, Operators and Crafts-folk to capitalise on Its Cathedral of the Sacred Heart of Jesus is the episcopal see of the Roman Catholic Diocese of Alotau–Sideia.

The town is located within the area in which the invading Japanese army suffered their first land defeat in the Pacific War in 1942, before the Kokoda Track battle.