Kelbra lies on the northern slopes of the Kyffhäuser mountains in der Goldene Aue. The B 85 federal road starts in the neighbouring village of Berga and runs through Kelbra over the Kyffhäuser to Passau.
Due to the proximity of the Kelbra Dam and the Kyffhäuser, the town is a type of tourist centre, but suffers from heavy day traffic, especially motorcycles, because the very attractive climb up to the Kyffhäuser starts here.
Nearby are the Barbarossa Cave and the Peasants' War Panorama in Bad Frankenhausen. Kelbra is a good base for excursions into the Harz.
The villages of Sittendorf, Tilleda (Kyffhäuser) and Thürungen belong to the borough of Kelbra.