It lies in a broad valley between the Cuilcagh and the Slieve Russel mountains. Ben Aughlin mountain, just to the northwest of Swanlinbar, owes its unusual shape to ice formations during the last Ice Age over 12,000 years ago.
The surrounding countryside is tranquil and beautiful, and is intersected by two rivers, the Cladagh and the Blackwater. The village also lies beside the Ulster walkway making the area popular with not only fishermen but also walkers and hikers.
An amenity area at the nearby Tullydermot view point and waterfalls provides beautiful views of the local landscape.
Swanlinbar was once famous for the healing properties of its many spas and natural springs. Today however, only one spa well at Dromod Glebe/Drumbrughas to the south east of the village is now easily accessible.
The waters of the well, with high sulphur content, are traditionally held to be a cure for rheumatism.