The municipality of 1838 was created to be identical to the Lærdal parish (prestegjeld) that included the sub-parishes (sokn) of Borgund, Tønjum, Hauge, and Aardal.

The official blazon is "Gules, two dragon heads bendwise Or" (Norwegian: På raud grunn to gull drakehovud i skrå rekkje).

This means the arms have a red field (background) and the charge is two dragon heads aligned diagonally.

The charge has a tincture of Or which means it is commonly colored yellow, but if it is made out of metal, then gold is used.

The municipal council (Kommunestyre) of Lærdal is made up of 17 representatives that are elected to four year terms.

The municipality is centered on the Lærdalselvi River with the Filefjell and Hemsedalsfjell mountain ranges on its east.

Lærdal is bordered in Vestland county by the municipality of Aurland to the southwest, Sogndal to the northwest, and Årdal to the north.

The lakes Eldrevatnet, Juklevatnet, and Øljusjøen are located along the southeastern border, south of the mountain Høgeloft.

The very long fjord snakes past mountain ranges on its way from the sea inland to Lærdal, and the mountains create a rain shadow effect for the innermost part of the fjord, making Lærdal much drier than the coast, with just 20% of Bergen's precipitation.

In fall 2007, a smolt was again found infected by the parasite, and new treatments started in late March 2008.

Lærdal has long traditions in farming, with the lower region of the valley being great for vegetable crops.

The local Western Norway Regional Health Authority hospital provides medical care for Lærdal itself and seven of the surrounding municipalities.

The hospital, together with Opplysningen 1881 (directory assistance company), Østfold Energiproduksjon A/S and Norsk Hydro Aluminium Production Facilities in Årdal, are the major employers in Lærdal.

The local government and health authority is trying to close this hospital due to cost cutting, which may have negative effects on the area.