The community lies in the Westerwald between Siegen and Limburg on the boundaries with North Rhine-Westphalia and Hesse.

In 1341, Liebenscheid had its first documentary mention in a partition treaty between the sons of Count Johann I of Nassau-Dillenburg.

West of the community runs Bundesstraße 54, leading from Limburg an der Lahn to Siegen.

The nearest InterCityExpress stop is the railway station at Montabaur on the Cologne-Frankfurt high-speed rail line.

The nearest air travel connection is offered by the Siegerland Airport lying a few kilometres west of the community.