The fishing village is located along the 13-kilometre (8.1 mi) long Båtsfjorden, an inlet from the Barents Sea, along the northern coast of the Varanger Peninsula.

The village sits at the northern end of Norwegian County Road 891.

The Hurtigruten coastal express has regular stops at Båtsfjord.

[5] Båtsfjord is one of the biggest fishing ports in Finnmark County with around 10,000 boat arrivals each year.

Historically, there were three whaling stations in Båtsfjord, but they are no longer in operation.