The village lies within the most extensive of the steephead valleys of the Jura escarpment, the Reculée de Baume. It is therefore almost surrounded by limestone cliffs about 200m high. The River Seille has its source within the Reculée and flows through the village. A short tributary of the Seille, the River Dard, merges with the Seille at Baume; at the source of the Dard, also within the Reculée, there is a notable series of caves.
The village is dominated by the former Baume Abbey, and in consequence has a significant tourist trade, though this mainly involves day visitors. Conducted tours both of the abbey and of the Dard caves are offered. The GR 59 long-distance footpath passes through the village.