The town centre stretches along the steep banks of the Saale river at the confluence with the Orla, approximately 17 km (11 mi) south of Jena.

Orlamünde station is a stop on the Saal Railway line from Großheringen to Saalfeld.

Located at the eastern rim of the early medieval Duchy of Thuringia, Orlamünde was the site of a fortress at the border with lands of the Polabian Slavs and the Sorbian March.

He and his descendants went on to rule as Counts of Weimar-Orlamünde until the dynasty became extinct in 1112 and their possessions were inherited by the Saxon House of Ascania.

The St Mary's parish church was erected west of Orlamünde Castle in the 11th century.