[5] The settlement lies in the south-eastern section of the Chersky Range, on the left bank of the Debin, a tributary of the Kolyma, by the mouth of the stream Yagodny.

From 1949 until 1957, the settlement housed the administration of the Sevlag [ru] Gulag forced labor camp, which was initially subordinated to Dalstroy.

The main industry in the settlement remains gold mining, although this has declined significantly since the collapse of the Soviet Union.

Other industries such as production of food and construction materials also suffered as a result, meaning that a large proportion of the town's population has left since the 1990s.

Magadan can be reached via the Kolyma Highway, with branch roads leading to the former mining settlements of Verkhny At-Uryakh, Taskan, and Elgen.