The municipality has a population of 2,822 (31 December 2024)[2] and covers an area of 1,592.03 square kilometres (614.69 sq mi) of which 32.66 km2 (12.61 sq mi) is water.

[1] The population density is 1.81 inhabitants per square kilometre (4.7/sq mi).

Neighbour municipalities are Keminmaa, Ranua, Rovaniemi, Simo, Tornio and Ylitornio.

Tervola is named after its first Finnish settler, a Savonian named Olli Paavonpoika Tervonen, mentioned on a tax list from the year 1579.

The part of the Kemijoki between Paakkola and Rovaniemi was essentially uninhabited before his family's arrival.