Fernie is the only city-class municipality in Canada that is fully encircled by the Rocky Mountains. It sits at the crook of a dogleg in a glacial valley where the Elk River is intersected by its tributaries Coal, Lizard and Fairy Creeks.
To the north of the city lies Mount Fernie, Mount Klauer, Mount Trinity (most commonly known as the Three Sisters) and Mount Proctor. To the northeast is Mount Hosmer, to the east Fernie Ridge, to the southeast Morrissey Ridge (including an outcropping known as Castle Mountain) and to the southwest the various peaks of the Lizard Range.
The Lizard Range is home to Fernie Alpine Resort, one of the largest ski resorts in Canada, and the noted backcountry resort of Island Lake Lodge. Unique weather patterns tend to bring much more precipitation to the area than one might typically find this far inland, making the area a mecca for powder skiing.
Summer in Fernie is generally far quieter than the winter months, though mountain biking, fly fishing and golf are increasingly important tourist draws.