The town is delimited by the hills of Sierra de Tramontana. Banyalbufar is located on the slope of Sierra de Tramontana, on the seashore. Three wide valleys are part of the municipality: Son Coll, Banyalbufar, and Planicia.

The watchtower, known as Ses Ánimes, is an excellent viewpoint of the town and its shore, and a symbol of the city. In the interior of Banyalbufar we can visit the magnificent Historic-Artistic Site of Clastra de sa Barona, which contains a cloister and a defence tower that date back to the 17th century. Nowadays, it houses a hotel establishment.