The lake is approached from Srinagar by a 30-kilometre (19 mi) road via Shadipur, Nasim and Gandarbal. Road to Wular Lake, the largest lake in Kashmir, passes through this lake, via Safapur.

The lake is surrounded by the Baladar mountains on the east, by an elevated plateau known as 'Karewa' comprising lacustrine, fluviatile and loessic deposits on the north and bounded by the Ahtung hills in the south, which are used for limestone extraction.

Along the course of the Jhelum River, the Manasbal Lake falls under the third series of high altitude lakes of the Himalayas (designated with respect to their origin, altitudinal situation and nature of biota they contain) as the valley lakes (Dal, Anchar, Manasbal etc.) situated at the altitudinal zone of 1,585–1,600 m (5,200–5,200 ft); the other two types being the high altitude wetlands (altitude 1,585–4,000 m/5,200–13,000 ft amsl) of the second series of lakes (Nilnag) in the lower fringes of Pir Panjal ranges right in the midst of pine forests, and the glaciated lakes of the first series situated on the inner Himalayas between 3,000–4,000 m (9,800–13,000 ft) amsl (Alipathar, Sheshnag, Kounsarnag, Tar Sar, Mar Sar, Vishansar, Gangbal, Kishna Sar, Kyo Tso, Pangong Tso, etc.) which have probably originated during the third Himalayan glaciation. A fissure is reported to be running from east to west at the centre of the lake.

Wullar-Manasbal Development Authority has reported unearthing of an ancient Hindu temple, on the eastern shore of the Manasbal Lake, built in the traditional architectural style of ancient Kashmir. The lower half of the temple, which was buried in earth, was found during the restoration works undertaken for the lake. Dated to 800-900 AD, during Avantivarman or Sankaravarman rule, based on epigraphic writings, the temple, constructed in local grey stone, has a unique pyramid-shaped roof top with Corinthian or floral motifs. It is stated to be a new pilgrimage attraction for pilgrims who visit the cave shrine at Amarnath and the Kheer Bhawani temple at Tulmulla in Ganderbal district.[9] Other tourist attractions in the lake area are the Manasbal Temple, the ruins of a terraced Mughal garden and sculptured stones of some Buddhist shrines on the banks of the lake.