As of 2007[update], the village of Munshausen, which lies in the centre of the commune, has a population of 172, while the commune of Munshausen has a population of 1,034. Other settlements within the commune are Drauffelt (169 inhabitants), Marnach (581), Roder (61), and Siebenaler (51).
Munshausen is part of the Oesling, the Luxembourgish part of the Ardennes. The landscape is composed of free plateaus at an average altitude of 1650 ft, cut by several narrow riverbeds. The axis Hosingen-Heinerscheid, passing through Marnach, is the dividing line between the basins of the river Clerve in the west and the river Our in the east.