It is located in the Serra Gaúcha region, at 29º22'35" South, 51º06'52" West, about 90 km (56 mi) north of Porto Alegre, the state capital city.

Nova Petrópolis is situated at an average altitude of 580 m (1,900 ft) above sea level and covers an area of 293 km2 (113 sq mi).

Tourism is the main economic activity, followed by the manufacture of wool garments, dairy farming and shoemaking.

Some known towns near Nova Petrópolis are Caxias do Sul, Novo Hamburgo, São Leopoldo, Feliz, Gramado, Canela.

There are also several restaurants.The city is also the home of the famous Ninho das Águias Mountain Peak which is a local attraction that draws thousands of visitors monthly.