Karlobag is a village and seaside municipality on the Adriatic coast in the Lika-Senj region of Croatia. It sits at the foot of the Velebit mountain, one of the country's major mountain ranges, and offers views of the nearby island of Pag. The municipality lies west of Gospić and south of Senj along the coast.
The Gacka river flows through the surrounding area, contributing to the region's geography. The location combines both coastal and mountainous terrain, with the Velebit range rising directly behind the settlement. This positioning gives Karlobag a distinctive landscape where the Adriatic Sea meets the steep slopes of one of Croatia's most prominent mountain chains.