It is located about 90 kilometres (56 mi) northwest of Trieste and about 40 kilometres (25 mi) north of Udine, on the border with Slovenia. Chiusaforte is situated in the Canal del Ferro valley of the Fella River, running between the Carnic and Julian Alps to its confluence with the Tagliamento.
The Fella Valley is the site of Pontebbana railway line from Udine to Tarvisio and the Austrian border. It is also traversed by the parallel Italian Autostrada A23 highway from Palmanova to Tarvisio.