Neighbour municipalities are Rovaniemi, Kemijärvi, Ranua, Salla, Kuusamo, Taivalkoski and Pudasjärvi.

8 kilometres (5.0 mi) north of the center of Posio is a microstate called Valtio [fi], founded by Ari "Paska" Peltonen in 2006.

[5] Posio's most renowned attractions are the Pentik-mäki Culture Centre, Riisitunturi National Park, Korouoma Nature Reserve, and the clear waters of lakes Kitkajärvi and Livojärvi.

Pentik Oy interior design company was established in 1971 by Anu and Topi Pentikäinen.

Regular events in Posio are the Posio Fair, the amateur theatre event Teatterihelinät, and the Traditional Fish Fair Market (Muikkumarkkinat) in July.