Ferntree Gully has many Eucalyptus trees (gum trees) and lies at the foothills of the Dandenong Ranges. Its boundaries meet Upper Ferntree Gully, a separate but similarly named suburb with the same postcode, Boronia to the North, Scoresby to the West and Lysterfield to the South. The eastern boundary coincides with the Ferntree Gully National Park which is a National Park administered by the Federal Government. Ferntree Gully is in a high fire risk area in the vicinity of the Ferntree Gully National Park, however the majority of the suburb is considered low risk.