Underberg is an administrative town in a dairy and cattle farming community in the Mzimkulu River valley of KwaZulu-Natal, South Africa.

The town also houses provincial offices of the ministries of Social Welfare and Transport, a clinic; as well as the municipal library.

The area surrounding Underberg provides a large variety of tourism offerings, as a gateway to the Southern Drakensberg.

The Underberg district is, along with Dullstroom, Mpumalanga one of South Africa's premier trout fly fishing destinations.

Paddlers from far and wide gather annually for the Drak Challenge canoe race held on the Mzimkulu river.