Laixi city borders Laiyang city to the east, Pingdu city to the west, Jimo city to the south, and Zhaoyuan city to the north and northeast.

It occupies an area of 1,522 square kilometers with a maximum width of 36 kilometers from east to west and a maximum length of 63 kilometers from north to south. It has a population of 734,897 as of 2009.

Laixi city has six leading industries, including food process, textile, machine manufacturing, rubber chemistry, mineral and building material, and electronic information.