Guájar-Alto, together with Guájar-Faragüit and Guájar-Fondón, constitutes a part of the municipality of Los Guájares, which is located in the mountain range that shares that name. This mountainous region and Sierra de Lújar approaches the southwest face of Sierra Nevada from the sea.

Guájar-Alto sits on the highest spot on the mountain (last point on the road that links the three villages), Guájar-Faragüit is an intermediary between the other two Guájares and is in administrative terms, head of the three (the Town Hall and municipal services are located here) and Guájar-Fondón is the lowest of the gorges that forms the distinctive scenery of this singular area.