Oțelu Roșu is a town located in northeastern Caraș-Severin County, Romania. Situated within the Bistra Valley, it lies along national road 68 between the towns of Caransebeș and Hațeg. The settlement is part of the historical region of Banat.
The town serves as an administrative center for two villages, Cireșa (also known as Bisztracseres) and Mal (Mál).