The town is located on Thunderbolts Way and on the banks of the Gwydir River, in the Uralla Shire local government area, 563 kilometres (350 mi) from the state capital, Sydney.

[5] Bundarra Station was founded in 1836 by Edward G. Clerk and a hotel and store were established on the future townsite.

[6] The bushranger, Fred Ward, known as Captain Thunderbolt, stole two horses belonging to a police inspector from Abington station, near Bundarra in 1868.

The bridge has been listed on the Register of the National Estate, being of state significance due to its design, historical value and aesthetic appearance.

[13] The town today includes a K-12 central school, police station, two churches, the Grace Munro Centre (a state of the art aged care facility), an agricultural supplies store, garage, hotel, sporting club and golf course, rural transaction centre (with Centrelink access), community technology centre, general store/bottle shop/newsagent/gift shop and a takeaway store that is open seven days a week.

Annual events in town include the Agricultural show in January, the Goat Races in April and the rodeo in November.