Gaganbawada is situated on the Sahyadri range or the Western ghats also has a very famous fort Gagangad near it. Gaganbawada, though only 55 km from Kolhapur, is non developed and hilly area of the district. Gaganbawada gets the maximum rainfall during rainy season. Gaganbawada is on threshold of famous Karul Ghat & Bhuibawada Ghat. It is the taluka headquarters.

Gaganbawda was known as Bawada Mahal and covered areas of current Gaganbawda and Sindhudurg, admeasuring 243 sq.mi. It was felt that access from the former Gaganbawda Tehsil to the foothills was difficult and thus, in 1981, part of the Bawada Mahal was separated and given to the Sindhudurg tehsil. However, the Gagangiri Ashram, treasured by Gaganbawda, came to fall within the Sindhudurg administration.The town also has several temples, Lakshmapur Dam and Pandav caves; and is shot in many Bollywood movies.