It borders the municipalities of Huétor Vega, Cenes de la Vega, Pinos Genil, Güéjar Sierra, Dílar, La Zubia and Cájar.

Within the municipality of Monachil there are three distinct population centres: the old village, often referred to as Monachil Pueblo, the newer Barrio de la Vega and Pradollano, the resort village at the Sierra Nevada Ski Station.

The name Monachil comes from the Arabic منستير (monastir), a word of Greek origin meaning "monastery".

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