Kamianets-Podilskyi is located in the southern portion of the Khmelnytskyi Oblast, located in the western Ukrainian region of Podillia. The Smotrych River, a tributary of the Dniester, flows through the city. The total area of the city comprises 27.84 square kilometers (10.7 sq mi). The city is located about 101 kilometres (62.8 mi) from the oblast's administrative center, Khmelnytskyi.

Several historians consider that a city on this spot was founded by the ancient Dacians, who lived in what is now modern Romania, Moldova, and portions of Ukraine. Historians write that the founders named the settlement Petridava or Klepidava, which originate from the Greek word petra or the Latin lapis meaning "stone" and the Dacian dava meaning "city".

The different peoples and cultures that have lived in the city have each brought their own culture and architecture. Examples include the Polish, Ruthenian and Armenian markets. Famous tourist attractions include the ancient castle, and the numerous architectural attractions in the city's center, including the cathedral of Saints Peter and Paul, Holy Trinity Church, the city hall building, and the numerous fortifications.

Ballooning activities in the canyon of the Smotrych River have also brought tourists. Since the late 1990s, the city has grown into one of the chief tourist centers of western Ukraine. Annual Cossack Games (Kozatski zabavy) and festivals, which include the open ballooning championship of Ukraine, car racing and various music, art and drama activities, attract an estimated 140,000 tourists and stimulate the local economy. More than a dozen privately owned hotels have recently opened, a large number for a provincial Ukrainian city.