Chiusaforte is situated in the Canal del Ferro valley of the Fella River, running between the Carnic and Julian Alps to its confluence with the Tagliamento.

Chiusaforte borders the following municipalities: Dogna, Malborghetto Valbruna, Moggio Udinese, Bovec (Slovenia), Resia, Resiutta, Tarvisio.

The Fella Valley is the site of Pontebbana railway line from Udine to Tarvisio and the Austrian border.

Ulric von Eppenstein, Patriarch of Aquileia (1086–1121) had a fortress erected to charge tolls to travellers crossing the Alps.

The Patriarchs had to defend their territory against the claims raised by the Counts of Görz and the Dukes of Carinthia, until in 1420 the Republic of Venice conquered the Fella Valley up to Pontebba and incorporated it into the Domini di Terraferma.