Schleusegrund, as part of the "Vessertal-Thuringian Forest Biosphere Reserve", is located on the south-western slope of the Rennsteig at an altitude of 450 to 800 m above sea level. Winter sports enthusiasts can enjoy nature in the enchanting side valleys of the Rennsteig.

The municipality of Schleusegrund includes the villages of Schönbrunn, Gießübel, Steinbach, Langenbach and Biberau with the villages of Biberschlag, Lichtenau, Engenstein and Tellerhammer.