The Yarrangobilly River rises on the Fiery Range near the Kennedy Ridge, approximately 4 kilometres (2.5 mi) west southwest of Peppercorn Hill, within the Kosciuszko National Park.

[2] The Snowy Mountains Highway crosses the river at the locality of Yarrangobilly.

One of the main visitor access points to the river is the Yarrangobilly Caves area.

[4][5] The endangered Booroolong Frog was historically recorded in the Yarrangobilly River, but it is believed that the population may have disappeared due to the infectious disease Chytridiomycosis.

[6] The introduced rainbow trout is found in the river, a result of the stocking of local water bodies from the Gaden Trout Hatchery at Jindabyne by the Monaro Acclimatisation Society.