The commune is located in the central-north part of Maramureș County, 19 km (12 mi) south of Sighetu Marmației and 50 km (31 mi) northeast of the county seat, Baia Mare.

It is situated at an altitude of 490 m (1,610 ft), in a hilly region on the eastern slopes of the Gutin Mountains, on the banks of the river Mara.

It is home to Lake Gavril, which covers an area of over 2 hectares (4.9 acres) and has a depth of about 30 m (98 ft).

Formed by the collapse of a salt mine more than 60 years ago, the lake is known for its anthropomorphic shape and for the fact that at the top it has a layer of fresh water, and at the bottom a layer of salt water.

[3] At the 2011 census, Ocna Șugatag had 3,853 inhabitants; of those, 89.2% were Romanians, 8.3% Hungarians, and 2.3% Roma.