[7] Nissedal has been nicknamed the "Telemark Riviera" for its close proximity to Gautefall Alpine Center and for its many campgrounds and outdoor activities.

[10] Gautefall, which is home to Telemark County's largest alpine center, lies adjacent to the municipality.

[11] Nissedal's terrain is characterized by roche moutonnée rock formations, mountains, valleys, forests, wetlands, and lakes.

Nissedal is a popular destination for outdoor activities such as paddling, fishing, swimming, mountain biking, hiking, kayaking, skiing, boating, and more.

The official blazon is "Or, three nisse hats gules" (Norwegian: På gull grunn tre raude nisseluer, 2-1).

Bronze Age artifacts include swords and keys, while there are large burial mounds found in Fjone ("Kjempehaugane").

[19]: 40 One of the earliest areas to be populated in Nissedal was the cave Holmevasshelleren, approximately 40 metres (130 ft) from the lake Holmevatn at Kyrkjebygdheia.

Archeological discoveries have dated prehistoric settlements at Holmevasshelleren to Neolithic times, 3800 BCE-6000 BCE.

[26]: 157 [12]: 192 Ancient rock paintings from the Bronze Age can be seen at various sites in Nissedal, including by a steep mountain by Trontveit farm on the western side of the lake Nisser.

[4] The rock art site at Kvithammaren ("The White Crag") is named for the site where it is painted, namely a white niche in the mountainside, roughly 3–4 metres (9.8–13.1 ft) above the surface of Nisser Lake, at the foot of a 50-metre (160 ft) high cliff.

The other rock painting by Nisser Lake is known as Ovnen ("The Oven") and is located at the foot of a 20-metre (66 ft) high escarpment which originally jutted up in front of the panel.

This painting depicts a row of human figures, an animal pictograph, and a pattern of zigzag lines.

A local clergyman visited the paintings in the early 1800s and claimed the human figures at Ovnen to have been drawn by a monk in the memory of a bridal procession that drowned.

[19]: 38 [28]: 111 Heigeitilen, a boundary marker on the border between the three historic parishes of Tørdal, Nissedal, and Treungen, was first mentioned in written sources in 1792.

Archeological surveys here have retrieved various artifacts from the Stone Age, including arrowheads and flint tools.

The 1733 census indicates that Bjørn Alvson and his wife Torbjørg lived on a farm here with nine cows, 42 sheep, 16 goats, and two horses, among other animals.

[12]: 186–188 Reinsvasshytta by the lake Reinsvatn was built in 1900 by Amboritius Olsen Lindvig and was Gautefallheia's first cabin.

This preserve was expanded in 2005 and includes plateaus, roche moutonnée rock formations, valleys, swamps, along with forests of Wych-elm, Oak and Littleleaf linden trees.

Although the main trailhead for these preserves is located at Felehovet on Gautefallheia, there are also trails here from the lakes Feletjønn and Bjønntjønn in Nissedal.

Lytingsdalen Nature Preserve was established to protect its untouched landscape and its wildlife and flora.

The all-time high temperature 31.8 °C (89.2 °F) has been recorded in all three summer months - June 1970, July 1991 and August 1975.

[19]: 4 Located adjacent to Gautefall, Telemark County’s largest alpine center,[11] Nissedal is primarily a winter destination.

[60] Cross-country skiing trails are found throughout Nissedal, including at Kykjebygdheia, Fjone Høgfjell, Felle, Gautefallheia, and Vrådal.

[9] Rock carvings, burial mounds and other remains of ancient civilization have been discovered surrounding Nisser Lake.

[12]: 204 [15][16] From Hægefjell are views of Lake Nisser and Vrådal in the northeast, Nordbygda and Kyrkjebygda in the southeast, Fyresdal and Setesdalsheiene in the west, and as far as Seljord and Gaustatoppen in the north.

[67] A large number of trailheads are found near the lake Bjønntjønn, including trails maintained by the Norwegian Trekking Association leading to Felehovet, Mjåvassdammen, Havrefjell, and Reinvassnuten.

The hotel was established for mountain bikers and is situated far into the wilderness and connected to the many biking trails.

Other beaches include Sommarsletta in Treungen, Haugsjåsund, Tjønnfoss, Heimdøl, Skavannsgrova, Årekrokane, Røyrodden, Åraksøya (islet), Raudnes, Sandvikland, Sauodden, Furelund, Midtvann, Sandnes, and Bjønntjønn.

Carved during the Ice Age, the giant's kettle functions as a water park during summer months.

[12]: 198 Brown bears were common throughout the 1800s and early 1900s, and a number of place names derives from this, including Bjønntjønn, Bjortjønn, Bjørnåsen, Bjønndalsåsen, Bjønndalane, Bjorvatnet, and Bjønnsteinen.