Busti hamlet is located east of the geographic center of the town of Busti, well south of the main settlements in the town, which are along Chautauqua Lake in the north.

The hamlet is centered on a five-way intersection of Busti-Sugar Grove Road (departing southwest), Mill Road (southeast), Busti-Stillwater Road (east), Forest Avenue (northeast), and Southwestern Drive (northwest).

The city of Jamestown is 5 miles (8 km) to the northeast up Forest Avenue.

The hamlet sits in a valley on the north side of Stillwater Creek, an east-flowing tributary of Conewango Creek, part of the Allegheny River watershed.

According to the United States Census Bureau, the community has a total area of 2.3 square miles (5.9 km2), all land.