Kleinschmalkalden is situated at 450-800 m above sea level on the southwestern slope of the Thuringian Forest and is surrounded by forested mountains. The location in the narrow valley of the Schmalkalde River with its side valleys gives the village its very special charm. The "longest sight" of the Thuringian Forest, the Rennsteig, passes by in a curve at a distance of about 5 km, the Große Inselsberg is only 11 km away. Countless excursion destinations and sights in the near and far surroundings can be hiked to or "experienced" from Kleinschmalkalden. Kleinschmalkalden is also interesting for cyclists and mountain bikers because of the Mommelstein- and the Rennsteig-Höhen-Radwanderweg. Kleinschmalkalden is by incorporation since February 2006 a district of the municipality Floh-Seligenthal.