Ytrebygda is located southwest of the city center, south of the Grimstadfjorden and the lake Nordåsvannet. It was originally part of Fana municipality before Fana was incorporated into Bergen in 1972. Since then, it was part of the borough of Fana until 1990 when it became a separate borough. Ytrebygda borders Fana borough in the east and the Fanafjorden in the south.
Apart from the residential neighborhoods, Ytrebygda has a large office area in the Kokstad and Sandsli area, with large office buildings for companies such as StatoilHydro and Norsk Hydro. The city's airport, Bergen Airport, Flesland, is located in the western part of the borough. Just north of Airport Road is Siljustøl Museum. South of Airport Road is the Bergen Yacht Club (Bergens Seilforening), Golf Club and Fana Stadium. On the far south is Milde Arboretum and Botanical Garden, Fana College (Fana Folkehøgskule), and Store Milde.