Lochranza is the northernmost of Arran's villages and is located in the northwestern corner of the island. The village is set on the shore of Loch Ranza, a small sea loch. Ferries run from here to Claonaig on the mainland. The village is flanked to the northeast by the landmark hill Torr Meadhonach.

Lochranza has a field study centre, where schools from all over the UK come to study the locality's interesting geology and the nearby Hutton's Unconformity to the north of Newton Point, where the "father of modern geology" James Hutton found his first example of an angular unconformity during a visit in 1787.

The area around Lochranza Castle is a favoured spot to observe red deer, as the village is home to a healthy red deer population and, on the northern shore, grey seals are found year-round. Otters and golden eagles are also spotted in the area.