A landlocked first class municipality, Naguilian is located in the central part of La Union Province. It is bounded on the north by
San Fernando City and the town of Bagulin,
on the east by Burgos town, on the south by Caba, and on the west by Bauang.
The town has a total land area of 104 square kilometers and is politically subdivided into 27 barangays.
The town of Naguilian is well known for its woodcraft industry as well as its automotive repair and jeepney manufaturing.
Light industry manufacturing such as the production of fashion items, feed, food, furniture and other home decors are encouraged.
The commercial production of high value crops such as fruit, vegetables, herbs, and spices have bright prospect in Naguilian.