Phalia is situated at 32.43 N latitude and 73.58 E longitude. It is located between the main cities of Mandi Bahauddin and Gujrat, about 20 Kilometres from Mandi Bahauddin and 52 kilometres from Gujrat, at an altitude of 672 feet (205 m) above sea level.

Phalia has a moderate climate, which is hot in summer and cold in winter. During peak summer, the day temperature rises up to 45 °C. The winter months are mild and the minimum temperature may fall below 2 °C. The average annual rainfall in the district is 50 mm.

Punjabi is the native language of the province and is the most widely spoken language in Phalia. Urdu has started to become more prominent in many areas now due to its official status as the national language.