Daikundi falls into the traditionally ethnic Hazara region known as the Hazarajat in the highlands of central Afghanistan with the provincial capital, Nili.

The province is bordered on the south by Uruzgan, on the east by Ghazni and Bamiyan, on the north and west by Ghor, and the southeast by Helmand.

[7] While the Government of Afghanistan, NGOs, the United Nations, and NATO's ISAF forces have had little involvement in reconstruction in the province, there have been some initiatives.

The ethnic Hazaras make up the majority of the total population of the province, who speak the Dari and Hazaragi, eastern varieties of Persian.

As Daikundi does not have enough rainfall, there is a low capacity for wheat, orchard crops, beans, and vegetable production in cultivation; this makes the household members not have enough required food.

Since the water for irrigation has decreased in Daikundi province, farmers are very concerned about their food production and pasture; even, this has affected farmland leasing.

The rest of the year, people in Daikundi do not have access to better nutrition status and try to import dairy products, like yogurt, from other provinces.

[14] The city's Almond Festival, an annual event hosted by the province government, drew nearly 4,000 people from across Daikundi to celebrate.

[14] Daikundi province has 9 districts: Nili, Sangi Takht, Khadir, Gizab, Ishtarlay, Miramor, Shahristan, Kajran, and Kiti.

The province experiences acute water shortages and droughts have poor soil quality, and risks of avalanches, landslides, and flooding, which cause extensive damage to agricultural land, infrastructure, and food security.

[19] The above-mentioned organization also aims to build the capacity of local institutions to address climate change risk within the peri-urban extent of the rapidly developing Nili Town.