Hălmagiu commune is situated in the basin with the same name, at the confluence of the Hălmăgel and Crișul Alb Rivers, at the foot of Bihor Mountains.

It is composed of eleven villages: Bănești (Zarándbánya), Bodești (Bogyafalva), Brusturi (Páfrányos), Cristești (Keresztespatak), Hălmagiu (situated at 136 km from Arad), Ionești (Körösivánd), Leasa (Sövényes), Leștioara (Kisles), Poienari (Halmágymező), Tisa (Tiszafalva) and Țărmure (Martfalva).

The first documentary record of the locality Hălmagiu dates back to 1390, Bănești, Bodești and Ionești in 1441, Brusturi in 1360, Cristești in 1464, Leasa, Tisa and Țărmure in 1439, Leștioara in 1477 and Poienari in 1760–1762.

Although the economy of the commune is prevalent agricultural, the secondary and tertiary economic sectors have also developed recently.

Due to the small industry represented by handicraft, Hălmagiu has become an important centre of furriery and producing of wooden tools.