Yasugi is located in far eastern Shimane, bordered by the Nakaumi to the north, the Chugoku Mountains to the south and Tottori Prefecture to the east.

Due to plentiful supplies of iron sand and timber, ancient tatara steelmaking flourished and was a source of economic strength.

The city was founded on April 1, 1954, by the merger of Yasugi with the villages of Iinashi, Arashima, Akae, Shimada, and Otsuka.

Yasugi has a mayor-council form of government with a directly elected mayor and a unicameral city council of 18 members.

In terms of national politics, the city is part of the Shimane 1st district of the lower house of the Diet of Japan.