Grafenstein is a town in the district of Klagenfurt-Land, in the Austrian state of Carinthia. It lies in the southern part of Austria, within the Klagenfurt-Land district, which surrounds the city of Klagenfurt.
The town is located in Carinthia, Austria's southernmost state, a region known for its Alpine landscape and its many lakes. Grafenstein sits within this setting in the Klagenfurt basin area of the district.
As a municipality in Klagenfurt-Land, Grafenstein belongs to the administrative structure of Carinthia. The town shares its name with Grafenstein Castle, a historic site in the area.