Traditionally it has been the center of the Bosanska Krajina region, located in the north-western part of the country.
The city and surrounding area boast a number of popular tourist attractions. Among the most famous are the pools, thermal springs, and spas in the region. Due to its parks and over 10 000 trees Banja Luka was once nicknamed the "Green City". The area is popular among nature lovers, while the city centre is attractive to tourists due to its historical structures and many restaurants. Other attractions of Banja Luka are the Banj Hill and a waterfall of the Vrbas river near Krupa. Rafting on the Vrbas river is currently becoming popular among the local tourists. There is fishing, rock climbing and hiking along the canyon of the Vrbas between Banja Luka and Jajce, and there is plenty of accommodation for visitors.
Banja Luka has a continental climate, with harsh winters and warm summers. The warmest month of the year is July, with an average temperature of 21.3 °C (70.3 °F). Due to the city's latitude, it snows in Banja Luka almost every year.