[4] Located along the Enchanted Circle Scenic Byway, Eagle Nest is a small summer-home and resort destination.

Eagle Nest is located in western Colfax County in the Moreno Valley, between the Cimarron Range to the east and the main mass of the Sangre de Cristo Mountains to the west.

The village is at the north end of Eagle Nest Lake, a reservoir on the Cimarron River.

The main game fish caught in the 2,400-acre (10 km2) lake are kokanee salmon and rainbow trout.

Eagle Nest has a humid continental climate (Köppen Dfb), bordering on a subalpine climate (Dfc), with very large day-night temperature variations, very warm afternoons and chilly mornings in summer, and extremely cold mornings in winter.

Eagle Nest holds numerous low temperature records for New Mexico, including the coldest temperatures ever recorded in the state during January, March, April, May, July, and November.