It is situated at 722 meters above sea level while being surrounded by mountains and three large artificial accumulation lakes (Bajer, Potkoš and Lepenica).

Fužine was built in the 17th century when the House of Zrinski opened an iron mine in this area of Gorski Kotar.

Significant events include the 1727 construction of the Karolina road connecting Bakar with Karlovac, and the coming of the Zagreb-Rijeka railroad in 1873.

A lot of people started to come to Fužine to get away from the city life.

There are numerous bike routes and hiking trails in the mountains surrounding the village.