The town is located at the head of the Sandefjordsfjorden, along the Skaggerak coast in southern Vestfold.

The large town also includes coastal areas on both sides of the Mefjorden on the Vesterøya and Østerøya peninsulas.

[10] It is still considered a resort town, due to high numbers of visitors during summer months.

[15] One of the most important remains from the Viking Age was found at the grave site Gokstadhaugen (Gokstad Mound) in Sandefjord.

Sandefjord functioned as a seaport defined by the twin industries of shipping and shipbuilding throughout the 1600s and 1700s.

It was formally recognized as a market town (kjøpstad) by King Oscar in 1845 Over time, the city-municipality was enlarged.

On 1 January 1889, a part of the neighboring municipality of Sandeherred (population: 318) was transferred into Sandefjord.