Sourced in Ulu Muda Forest in Sik region in northeastern Kedah, along the border with Thailand, the river meets the water needs of the states of Kedah and Penang.

It then flows westward, passing through the southern suburbs of Kedah's second largest city Sungai Petani, and forming the natural boundary between Kuala Muda District and North Seberang Perai District on the Penangite side.

The Muda River Basin received an annual precipitation of 2,160 to 2,000 mm (85 to 79 in) a year from 1985 to 2015.

Mean monthly maximum (Tmax) and minimum (Tmin) temperature at the Ampangan Muda station ranged from 30.9 to 34.5 °C (87.6 to 94.1 °F) and 21 to 23.5 °C (69.8 to 74.3 °F), respectively.

On 6 October 2003, the discharge at Landang Victoria River gauging station was 1340 m3/s.