Tivat is located in the central part of the Bay of Kotor ("Boka Kotorska", or simply "Boka"), south of mount Vrmac. The municipality lies mostly south of the town, and has an exit to open sea at the tourist location Pržno inlet near Radovići village to the south. Its central part, where Tivat Airport is located, lies in fertile Grbalj valley. The airport is located near the isthmus of Luštica peninsula, which belongs to the municipality of Herceg Novi for the most part.