In a narrow valley dominated by the barren limestone massif of the Sierra de Loja, this small town - divided in two by the Genil river - is situated on the western edge of the fertile vega (plain) of Granada, with its undulating countryside of olive groves and cereal fields.

Occupying what was historically an important strategic position, Loja acted as a defensive centre under the Moors, who exploited the town's geographical location to guard the plain. Its military significance as a Moorish stronghold can be seen today in the remnants of walls and a tower of the former Islamic Alcazaba (citadel).

Loja also has several interesting churches, the best of which is the 16th-century Iglesia de San Gabriel, designed by Diego de Siloé, which has many fine Renaissance architectural features. Built over the site of an old mosque, the Iglesia de Santa María de la Encarnación was designed by the neoclassical architect Ventura Rodríguez and has Gothic and Mudéjar elements and an elegant belfry.

With over 50 caves close to town, caving is popular activity, along with hang-gliding, fishing, hiking and cycling.