Located in the southernmost tip of Babeldaob, Airai includes over 55 square kilometers of land covered with forest, savanna or thick mangroves as well as several limestone rock Islands. Airai Bay, on the southeast corner is large and shallow and the Ngerimel River, which supplies water for Airai and Koror from reservoir, is located on the south central part of the state.

Airai, second in population only to Koror, shares borders with Aimeliik on the northwest, Ngatpana to its north, Ngchesar to the northeast. Airai is connected to Koror on its southern border by a bridge which span the Toach el Mid (Channel). At the base of the hills, On the Airai side of the bridge, the main road turns east and continues along the coast winding through the inhabited villages of Ngetkib, Ngeruluobel, Ngerusar, Yelch and finally Airai. At Ngerusar, the road split north past the Airport and goes west to the reservoir, or east past the Palau Mission Academy, over the Ngerikiil River and north to Oikull. A second road extends north along the coast through the Ocholochol area following the route of yet another Japanese era road.

Palau's International Airport, with its 7700 foot runway, is Palau's main link to outside world. It was started during the Japanese administration in the latter 1930's and expanded considerablyduring the US administration.