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The main town and site of its municipal council is the town of Varde.

Neighboring municipalities are Helle and Ølgod to the east, Egvad to the north, Blaabjerg and Blåvandshuk to the west, and Esbjerg to the south. Part of its southern border is defined by the waters of Ho Bay (''Ho Bugt'').

By January 1 , 2007 Varde municipality will, due to ''Kommunalreformen'' ("The Municipality Reform" Of 2007) , be merged with existing Blaabjerg , Blåvandshuk , Helle , and Ølgod municipalities to form a new Varde municipality.


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