Florida State Road 81 crosses US 90 near the center of town, leading north 20 miles (32 km) to the Alabama border and south 19 miles (31 km) to Florida State Road 20 at Bruce.

Interstate 10 passes through the southern part of Ponce de Leon, with access from Exit 96 (SR 81).

The town is in the valley of Sandy Creek, a south-flowing tributary of the Choctawhatchee River.

Ponce de Leon Springs State Park is in the southern part of the town, north of I-10, along both sides of Sandy Creek.

The entrance is on the eastern side of the park off Ponce de Leon Springs Road.

The climate in this area is characterized by hot, humid summers and generally mild winters.