Grächen occupies a broad south-facing terrace at 1620 metres above the Mattertal (Matter Valley) in the canton of Valais, Switzerland. The village sits directly above the valley floor settlement of St Niklaus, positioned 20 kilometres north of Zermatt in a region encompassing 29 four-thousand-metre peaks including the Weisshorn (4357 metres) and Matterhorn (4478 metres). The largely car-free village core preserves traditional wooden Valais architecture, with modern lift infrastructure connecting to the surrounding Hannigalp and Seetalhorn ski zones. The municipality falls within the Visp district, part of the German-speaking Upper Valais region despite proximity to French-speaking lower valley areas.

The nearest valley town is St Niklaus three kilometres below, serving as the main transport interchange with the Matterhorn Gotthard Bahn railway. Visp lies 20 kilometres north at the junction of the Mattertal and Rhône valleys, functioning as the primary regional hub with mainline rail connections and major road access. Stalden and Saas-Fee represent nearby ski destinations, whilst Zermatt dominates the southern valley terminus. Bern sits approximately 125 kilometres northeast, accessible via the A9 motorway and cantonal routes. The Mattertal's dramatic topography features deep gorges, high alpine meadows, and Europe's highest vineyard at Visperterminen near the valley entrance.

Road access follows the well-maintained valley road from Visp, departing the A9 autoroute that runs along Lake Geneva from Lausanne through Montreux, Martigny, and Sion. From Visp, drivers follow Saas-Fee signage before branching to Grächen via St Niklaus, with the final ascent comprising a winding mountain road opened to public traffic in 1953. Driving times include approximately 2 hours 45 minutes from Geneva (224 kilometres), 2 hours 15 minutes from Sion (120 kilometres), and similar durations from Italian border crossings. The A9 motorway provides the primary east-west corridor, with the Simplon Pass offering summer access from Italy.

Geneva Airport lies 224 kilometres west (2 hours 45 minutes driving), serving as the principal international gateway with direct trains to Visp requiring 2 hours 28 minutes. Zurich Airport sits 224 kilometres northeast with comparable transfer times. Sion Airport operates 70 minutes away for private and charter flights, whilst Milan Malpensa (93 kilometres) and Bern (125 kilometres) airports provide alternative access within three hours. Rail passengers take Swiss Federal Railways to Visp, then transfer to the narrow-gauge Matterhorn Gotthard Bahn for the 20-minute journey to St Niklaus, followed by Postauto buses climbing to Grächen village centre in 20 minutes. Direct buses occasionally run from Visp, eliminating the St Niklaus change. The Snow'n'Rail scheme offers discounted combined rail and lift passes for six-day bookings.