Gujrat is situated on the bank of Chenab River, situated about 120 kilometres north of Lahore, the capital city of Punjab province, and 150 kilometres from Islamabad, the capital of Pakistan.
Prominent nearby locations include Jalalpur Jattan,Jhelum,Gujranwala, Mandi Bahauddin, Sialkot, Lalamusa and Bhimber-Azad Kashmir.
The city is surrounded by many villages and towns, which supply significant labour to the local market.
The city has a moderate climate. During the peak of summer, the daytime temperature shoots up to 45 °C , but the hot spells are relatively short due to the proximity of the Azad Kashmir Mountains.
During the winter, the minimum temperature may fall below 2 °C (36 °F). The average rainfall at Gujrat is 67 centimetres (26 in)
