Muzaffarabad is the capital of Azad Kashmir. It is located in Muzaffarabad District on the banks of the Jhelum and Neelum rivers. The district is bounded by North-West Frontier Province in the west, by the Kupwara and Baramulla districts of on the Indian side of the Line of Control in the east, and the Neelum District of Azad Kashmir in the north. The population of the district, according to the 1998 Census, was 725,000, and according to a 1999 projection, the population had risen to almost 741,000. The district comprises three tesils, and the city of Muzaffarabad serves as the capital of Azad Kashmir.

Muzaffarabad is situated at the confluence of the Jhelum and Neelum rivers. The city is 138 kilometres from Rawalpindi and Islamabad and about 76 kilometres from Abbottabad. Cradled by lofty mountains, Muzaffarabad reflects a blend of various cultures and languages. The main language is a form of Hindko. The Neelum river plays a dominant role in the microclimate of Muzaffarabad which joins Jehlum river near Domail.