It originates at the slopes of Vlašić, upstream of Sažići and Melina villages (at around of 1,590 meters above sea level), a watershed area of Vrbanja, Ilomska and Bila rivers.
The Ugar then flows into a deep and long canyon under Skender Vakuf, around 20 kilometres downstream of Jajce.
The upper and middle part of the basin in the area still has the character of a salmonid water, now there are only (brown trout), while the huchen and grayling have disappeared in the recent past.
The surrounding forests are inhabited by the big game (fox, wolf, bear, wild boar, and the others).
At in a brushwood at the mouth of the Ilomska, in a protected hunting area, there is feeding place for carnivores (including corvine shoals).