As of 2007[update], the village of Munshausen had a population of 172, while the former commune had a population of 1,034. Other settlements within the former commune are Drauffelt (169 inhabitants), Marnach (581), Roder (61), and Siebenaler (51).
Munshausen is situated in the northeastern part of Luxembourg. In the east, the river Our forms a natural boundary to Germany.
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.