Dragačevo is settled around basins of rivers: Bjelica, Moravica, Zapadna Morava and Tolišnica and on slopes of mountains Ovčar, Jelica, Troglav, Čemerno, Golibac and Krstac. This region extends on the space  of 735 square meters, in Western part of Serbia.

Dragačevo is characterized by wavy uplands, which are covered with forests and orchards. The land along the rivers and lot on the hills are very suitable for farming crops and vegetables, while mountains are habitats for very rich flora and fauna.

The nature of Dragačevo has been very bounteous to habitants, who have exploited and increased beauty and boon of the environment, since the prehistoric times. All together bring forth cultural and natural treasures and monuments as record of past times.

The highest peak in Dragačevo is Smrdljuč on the mountain Čemerno (1.581 meters) and the longest river is Bjelica (41 km). The whole basin of this river extends on territory of Dragačevo, from mountain Borova glava (1.246 meters) to the another side of region, where is her confluence in the river Zapadna Morava, before the picturesque gorge among the Ovčar and Kablar. Bjelica river flows trough the town Guča.

In this part of Serbia is under the humid continental climate. From one to other seasons is moderated transition. The maximum temperature in the summer is circa 35 degrees Celsius, but, in the winter temperature is going down circa 20 degrees Celsius.