The city is situated on a spur of the Vindhya Range, 1,758 feet (536 m) above sea-level around 172 kilometres (107 mi) northeast of the state capital, Bhopal.

The ancient Indian kingdom of Chedi had its capital at Suktimati, which was located at Sagar during contemporary times.

When Chhatrasal gave a region (Subha) to Bajirao, he appointed Govindpant Kher (later Bundele) as an administrator.

In 1818, a large part of the Sagar district was ceded by Peshwa Baji Rao II to the British East India Company.

But the order was restored in the following year, and the Saugor and Nerbudda Territories were again placed under the political control of an Agent named to the Governor-General.

[10] Sagar has an average elevation of 427 metres (1401 ft) and is located in the central part of India, just north of the upper limit of the Vindhya mountain ranges.here is a lake in middle of the city.

[17] Banda, Bina, Garhakota,Malthone ,Rehli, Sagar, Khurai, Shahgarh, Rahatgarh, Deori, Kesli, Jaisinagar.

The farmers use the latest technologies pertaining to the sector of agriculture so that a healthy crop is obtained.

With many proposed large and small scale industries, the economy of Sagar is bound to grow at a fast pace.

Due to its scenic beauty and proximity to Khajuraho tourism also contributes to strengthening its economy.

[20] These small scale industries mainly manufacture steel utensils, detergent cake, and powder, agricultural equipment, Agro Fertilizers, food processing, cattle feed, Laminated Glass, welding electrodes, plastic goods, alum, caustic soda, solvent plant, granitbillie stone, pipes, acrylic sheets, PVC cable, acrylic products, incense sticks, all-purpose flour, etc.

Beedi (A traditional Tobacco used in India) and Agarbatti making is one of major small manufacturing industry in Sagar.

The north-south corridor passes through Sagar city, hence the hotel industry here has also made considerable progress.

Which makes a huge contribution to the economy of Sagar.Many shopping malls and complexes are also located in Sagar.

The airfield is often used by Madhya Pradesh Government Aviation and VIP charter aircraft as well as Medical evacuation flights.

It is well connected to the cities such as Delhi, Gwalior, Agra, Mathura, Jammu, Amritsar, Mumbai, Bangalore, Bhopal, Chennai, Goa and Hyderabad.