Prozor-Rama is located in the central part of Bosnia and Herzegovina, in the Rama valley between mountain peaks of Prenj, Čvrsnica, Čabulje, Crow, Ljubuša, Raduše and Makljen. This predominantly rural area, covers an area of 477 square kilometers and borders the municipalities Gornji Vakuf-Uskoplje, Konjic, Jablanica, Posusje and Tomislavgrad.
The administrative center of the city Prozor and the Rama area was named after the eponymous river, which has three sources: Rama, Buk and Krupić. Relief of municipality is mountainous and hilly, punctuated by valleys of Rama and its tributaries. Most of the Window-Rama is situated between 500 and 1000 meters above sea level, is characterized by a moderate, warm-moist air. Prozor-Rama has significant agricultural areas, but they are not sufficiently exploited. In addition, the area also has forest resources, so that a portion of the population involved in the lumber industry. The economy still dominated trading and hospitality industry, and to a certain extent represented and processing industry. Development potential is reflected in the improvement of industry, tourism and agriculture.