Kneževo is located between the rivers Ugar, Vrbas and Vrbanja and surrounded by the mountain chains of Čemernica and Ranča to the west, Vlašić to the south and Ježica to the northeast.

Neighbouring municipalities are Čelinac (far north), Kotor Varoš (east), Travnik, Dobretići, Jajce (south), Mrkonjić Grad (west) and the city of Banja Luka (northwest).

In Imljani there is a monument dedicated to the 43 fallen soldiers of the Army of Republika Srpska who fell on the Vlašić battlefield on 20 March 1995.

[9] According to the 1991 census, the municipality consisted of: Bastaji, Bokani, Borak, Bregovi, Brnjići, Bunar, Čarići, Ćukovac, Davidovići, Dobratići, Donji Orašac, Golo Brdo, Gornji Orašac, Imljani, Javorani, Kobilja, Kostići, Kričići - Jejići, Melina, Mijatovići, Milaševci, Mokri Lug, Paunovići, Pavlovići, Prisika, Rađići, Skender Vakuf, Slipčevići, Šolaji, Vitovlje Malo, Vlatkovići, Vukovići, Zapeće, Zasavica, Zubovići and Živinice.

In 1995, the municipality included Bastaji, Bokani, Borak, Bregovi, Čarići, Ćukovac, Golo Brdo, Imljani, Javorani, Kobilja, Kostići, Malići, Mokri Lug, Paunovići, Rađići, Kneževo, Šolaji, Vlatkovići and Živinice; the southwestern settlements of Davidovići, Dobretići, Kričići and Melina became part of the municipality of Dobretići in the Federation of Bosnia and Herzegovina.