The city is located in western Colorado, in the Uncompahgre Valley, and is an economic, labor, and transportation waypoint for the surrounding area.

A branch railroad line served the mineral-rich San Juan Mountains to the south.

It provided irrigation water from the Gunnison River in the Black Canyon to the Uncompahgre Valley, helping turn Montrose into an agricultural hub.

According to the United States Census Bureau, the city has a total area of 18.5 square miles (48 km2); all of it is land.

The valley is arid, and is only arable due to the water from the Gunnison Tunnel and Ridgway Reservoir.

Snowfall occurs during the winter but is usually short-lived due to the high elevation and abundant sunshine.

[18] Gordon Composites, maker of nearly 90 percent of the high-performance laminate material used in the bow-hunting industry, is located in Montrose.

[23] The GOCO grant was the largest single grant awarded to the City of Montrose in its history, and connects the newly built, $30 million Montrose Recreation Center[24] to the project, safely under-passing both major highways within the city.

The plant was listed as a "primary employer" for the city on its Economic Development Corporation website.

[27] In 2024, both Shelter Distilling[28] and restaurant Toasty[29] opened after receiving economic incentives from the city.

As the nearest major airport to the Telluride Ski Area, Montrose sees heavy seasonal service.

Montrose is home to several businesspeople, including the former CEO of J.C. Penny stores and chairman of Starbucks, Myron "Mike" Ullman.

Montrose is the birthplace of American screenwriter and novelist Dalton Trumbo, who scripted films including Roman Holiday, Exodus, Spartacus, and Thirty Seconds Over Tokyo.