Steeg is a municipality in the district of Reutte, in the Austrian state of Tyrol. It lies in the western part of the country, within the Reutte district, a region commonly known as the Außerfern.
The village sits in the Lech Valley, a high alpine valley through which the Lech river flows. Steeg is one of several small municipalities strung along this valley, close to the border with the German state of Bavaria and near the Arlberg massif.
Like much of the Reutte district, Steeg is a small, rural community whose setting is shaped by the surrounding Alps. Its position in the Lech Valley places it within a landscape of mountain terrain and alpine scenery typical of this part of Tyrol.