The village lies in the southernmost cove of Bahía de Banderas (Bay of Flags).

It has pronounced wet and dry seasonal variation, with sudden monsoon-like rains from July through September, normally for a few hours in the evenings.

Occasional tropical storms will bring thunderstorms to the city in November, though the month is typically dry.

[5] Prevailing winds are from the southwest, and most weather systems approaching Yelapa and surrounding areas are consequently weakened as they pass over Cabo Corriente.

Thus even during the rainy season Yelapa's weather tends to be mild compared to other areas along the Mexican Pacific coast.