The district of Pfafferode is located on the western outskirts of Mühlhausen, directly on the B249 federal highway. It lies at the north-eastern foot of the Hainich at the transition to the Unstrut valley, with the Mühlhausen city forest to the south-west. The village is closely linked to the Ecumenical Hainich Clinic.

The parish church of St. Michael, which also serves as the clinic church, is well worth a visit. The extensive park on the hospital grounds is well-maintained and boasts an old stock of trees.

A local hiking trail on the northern edge of the village leads via Peterhof to the Mühlhausen city forest, where a variety of hiking trails are available.