Much of the region is an ancient highland, but there is basaltic bedrock near Cooma and Nimmitabel that produce the only true chernozems in the whole continent, which are some of the best soils in Australia.

The Monaro region is characterised by rolling hills that rise to extremely rugged peaks in the Tinderry Mountains and to shallow valleys in the upper Murrumbidgee.

Because the climate in the basaltic areas is too cold for really reliable cropping (Nimmitabel has had frosts in January), the main industry is raising sheep and beef cattle.

Nights in summer can be cool, but in winter the region is the coldest part of mainland Australia outside the Alps, with July minima averaging -0.3 °C (31.5 °F) in Canberra and -1.5 °C (29.3 °F) in Bombala.

Larger localities within the Monaro include Shannons Flat, Yaouk, Eucumbene, Bunyan, Jerangle, Countegany and Kybeyan.