It is located south of Sakangyi and south-west of Taunggyi. Bawrithat Pagoda lies in the southern part of the town. Nyaungshwe the tourist hub for visiting Inle Lake and Inlay Lake Wetland Sanctuary. It consists of one main thoroughfare with numerous side streets and a few parallel roads. The main street has numerous shops, several restaurants, a few stupas, travel agencies and a market (located behind the storefronts). Near the end of this road, a bridge crosses the river channel near an impressive mirror-tiled stupa.
The town serves as a marina for the numerous long boats carrying tourists into the lake. The lake itself is located a few kilometers south through a river channel.
Nyaungshwe can be reached by bus, car, or by plane via the airport in Heho, located about a one-hour drive away.