Lorne is situated on the estuary of the Erskine River upon the Great Ocean Road, 140 km south-west of Melbourne and 29 km from Anglesea. Rearing up behind the town are the eucalypt-clad slopes of the Otway Ranges, an element of the scenic Angahook-Lorne State Park which spans the hinterland from Aireys Inlet to the settlement of Kennett River.