It lies at approximately 1,430 metres or 4,690 feet elevation on the slopes of Mount Phu Fa (1,625 metres or 5,330 feet).
Phongsali has summer temperatures around 25 to 30 °C (77 to 86 °F), with frequent rain.
In winter, from November to March, it is cool and mostly sunny, with daytime temperatures between 10 and 18 °C (50.0 and 64.4 °F).
In the centre of the town are houses built in Yunnanese style with ornate wooden fronts.
The large root system of the old trees extends deep into the mineral-rich soil and gives the "Phongsali tea" a distinctive aroma and taste.