Besides a few hamlets, the municipality consists of the four church villages Niederau, Oberau, Auffach and Thierbach and is situated in the Kitzbühel Alps.

The municipality Wildschönau is based on "gentle" tourism and emphasizes not being a ski circuit like the nearby Kitzbühel.

In the north, the valley is separated from the Inntal by a much lower mountain chain, which is cleft by the Kundler Klamm, above which is the Kragenjoch.

The first mention of Wildschönau dates back to 1193–95, when the Bavarian count Henry of Lechsgemünd-Rettenberg transferred some of his people to the Herrenchiemsee cloister.

Among the testimonies of the deed issued in that circumstance was the ministerialis «Adelbertus de Wiltsconenŏwe» (Albert of Wildschönau).