Babušnica (Serbian Cyrillic: Бабушница) is a town and municipality situated in the Pirot District of southeastern Serbia.

The municipality borders Gadžin Han municipality in the north-west, Bela Palanka municipality in the north, Pirot and Dimitrovgrad municipalities in the east, Bulgaria in the south, and Crna Trava and Vlasotince municipalities in the west.

From 1929 to 1941, Babušnica was part of the Morava Banovina of the Kingdom of Yugoslavia.

Aside from the town of Babušnica, the municipality has the following villages: According to the census done in 2011, the municipality of Babušnica had 12,307 inhabitants.

Ethnic composition of the municipality of Babušnica:[4] The following table gives a preview of total number of registered people employed in legal entities per their core activity (as of 2018):[5] This Pirot District, Serbia location article is a stub.