During the Battle of Grunwald in 1410 the village became famous for sending five armed men to fight on the side of King Władysław II Jagiełło for which the village received land in the nearby Tatra Mountains - Hala Waksmundzka (Meadow of Waksmund) and Dolina Waksmundzka (Valley of Waksmund) near Morskie Oko.

Waksmund lies at an elevation of 565 metres primarily on the south bank of the river Dunajec in a hollow between two fossil sandar from the ice age.

The westernmost outlier of the Pieniny range, Gisowa Skała, lies a few kilometres to the southeast of the village near to Gronków.

Spring sees large diurnal ranges; it can be up to 20 °C during mid day, while at night it can cool down to -10 °C.

Winter temperatures however, are among the coldest in Poland due to the unique geography which causes the area to function quite like a cold sink; -35 °C is not unheard of on calm and clear nights above a fresh snow cover during a cold spell, and an unofficial all-time record low of -49 °C was reported in the winter of 1929.