The town of Bacuag is situated along the northeastern coast of Mindanao, along the eastern part of the province of Surigao del Norte. It is bounded on the northwestern portion by the town of Placer and on the northeastern portion by Hinatuan Passage. On the southwestern side, it is bounded by the town of Guigauit. On the western side, it is bounded by the town of Tubod and Alegria. Bacuag is 44 kilometres (27 mi) from the provincial capital Surigao City.
Along the southwestern and northeastern portions of the municipality are 44% mountainous areas covering portions of Barangays Cambuayon, Pongtud, Dugsangon and Sto. Rosario. The arability and crop suitability of these areas are limited and allowable urban development is of low density. These are best suited for pasture and forestal purposes. A large portion of plain area covers the east and northeastern part covering portions of Poblacion, Campo, Cabugao, Pautao and parts of Dugsangon and Payapag. Approximately 26% of these 8,256 hectares is suited for intensive agriculture and high density urban development. The remaining 30% is also suited for intensive agriculture but with soil conservation and erosion control measures. Allowable urban development ranges from high to medium density.
Certain areas in the municipality are considered flooding hazard covering 13% of the total municipal area. These are located along and near river and sea banks, located in some portions of Barangays Cabugao, Campo, Payapag, Pongtud, Cambuayon and Poblacion with flood occurrences ranging from slight to moderate.