In the western part of the Republic of Srpska and the northwestern region of Bosnia and Herzegovina, the City of Laktaši stretches within 44 degrees, from its 46th to the 59th minute of northern geographic latitude, and between the 10th and 29th minute of the 17th degree of eastern geographic longitude. It covers an area slightly less than 400 square kilometers. To the north, it borders the City of Gradiška and the municipality of Srbac, to the northwest and south is the municipality of Banja Luka, and to the southeast are Čelinac and Prnjavor.

The border with the Republic of Croatia, as well as Banja Luka, the capital of the Republic of Srpska, is 20 kilometers from the city centre. Laktaši is 250 kilometers from Sarajevo, 160 kilometers from Zagreb, and 306 kilometers from Belgrade.

The Vrbas River, which flows from Banja Luka in a southwest-northeast direction, forms a geographical boundary within the city. On the left side of the Vrbas is the Potkozara-Left region, which lies on the slopes of Mount Kozara, while on the right side is the Župa area – gentle slopes and foothills of Crni Vrh, as well as the valleys of the rivers Turjanica and Crkvena. To the northeast of Laktaši, toward Srbac and the Sava River, is the expansive Lijevče Field.