It is on the Princes Highway, 338 kilometres (210 mi) south west of the state capital, Melbourne.

The Tyrendarra township lies within a bend of Darlot Creek, before it enters the Fitzroy River—which also flows through the locality.

[1] The area was settled in the 1870s and a Post Office opened around February 1879 and closed in 2000.

The Tyrendarra Indigenous Protected Area, which lies on the Tyrendarra lava flow from the extinct volcano Budj Bim lies between the Fitzroy River and Darlot Creek close to the township.

The formally recognised traditional owners for the area in which Tyrendarra sits are the Gunditjmara People[3] who are represented by the Gunditj Mirring Traditional Owners Aboriginal Corporation.