People of the town like to use the Alster River for swimming, boating, and other recreation. Other popular activities are walking, riding, going by bicycle, and picking berries and mushrooms in the forest.
Alstermo also has tennis courts, a football stadium, a sports hall and a shooting-range. In the winter, skiing and skating are very popular. Elk, deer, fox, badger, marten, mink, and a host of other animals live in the dark woods surrounding Alstermo. It is also common to see cranes, herons, hawks, and buzzards. Fish such as pike, perch, roach, and burbot are prevalent in the waters of the Alster River.
Alstermo has a doctor, a dentist, a post office, a bank, various stores, a youth hostel, restaurants, a library, a cinema and a recreation park. A bus company also serves the community.
Today Alstermo is most famous for their handball team Alstermo IF. Alstermo IF have been playing in one of the top leagues in the Swedish league pyramid in handball for almost a decade while their football team have been promoted Division 3 Sydöstra Götaland.