It is located at the edge of the Swabian Jura, where the Great Lauter flows into the Danube, about 35 km southwest of Ulm.
The municipality borders in the north and east on Ehingen, in the south on Untermarchtal and Obermarchtal, as well as in the west on Rechtenstein and Emeringen.
In addition to Lauterach, the community also includes the districts of Neuburg, Talheim and Reichenstein.
After various changing dominions, the area finally reached Württemberg in 1803 (except for Talheim, which followed in 1806).
In 1973, the municipality joined the Munderkingen administrative community and was thus able to maintain its independence.