Wächtersbach lies between the Spessart and the Vogelsberg Mountains in the middle Kinzig valley at the edge of the Büdingen Forest, not far from the towns of Gelnhausen, Birstein, Bad Orb and Bad Soden-Salmünster.

To the north, Wächtersbach borders on the communities of Kefenrod (Wetteraukreis) and Brachttal.

Retail business and the electrical engineering industry underpin the town's economic life.

The town was famous for the brightly colored porcelain coffee cups and other dinnerware that are made there at the Wächtersbach Ceramic Factory, founded in 1832 (Although the manufacture of some of the coffee cups and dinnerware are now outsourced to Spain).

The Kinzig Valley Railway with the Wächtersbach station leads through the town.