Khovd aimag has immense area that embraces Mongolian Altai mountains, great lakes depression and northern Altai gobi. In the western side it borders with the People's Republic of China, in northwest with Bayan-Ulgii, in east and north east with Zavkhan, and in the southern side borders with Govi-Altai aimag. The total length of the border is 1,522km. From north to south it is 453km, from east to west is 249km and is located at approximately 2,230m above the sea level.

The aimag has many big mountains like Tsambagarav, Darvi, Baatar, Khukh Serkh range, Munkh Khairkhan, Jargalant, Sutai, Myangan Ugalzat, and Altan Khukhii and 20% of the aimag territory is a Gobi.

The aimag lacks forest, but along the riverside birch, aspen, bush, gooseberry, strawberry and other berry bushes grow. Across the aimag wormwood, wild leek, agropyron, Mongolian wild onion, couch, cleistogenes, anabisis, salsola, sage brush and other floras are abundant. Gobi area is rich with saksaul, populus diversifolia and tamarix. Locals and medics widely use herbs like saussurea involucrata, water lily, roseroot, rhodiola quadrifida, licorice, valerian, odontites, plantain and wild rose. In mountainous areas alpine, in the southern parts gobi floras grow. Forest covers about 644.4 thous. ha of land of the aimag. Out of that 352ha is occupied by aspen, 3,846ha by bush, 3,400ha by larch, 4,000ha by cargana, 516.5 thous. ha by saxaul, 149ha by birch, 2,749ha by seabuckthorn bush and the remaining part is occupied by cultivated forest respectively. There are 5 floral zones around the lake areas and the floras that are in Mongolian Red Book such as single leafed Saljir, white water lily, golden spatterdock, reed and bamboo grow here. The 25 out of all 86 types of floras that are recorded in Mongolian Red Book grow here. The aimag lacks plants, yet the soil is fertile. There are 120 kinds of pasture plants grow here. The annual hay capacity is 0.5-2.0 centner. Sweet melon, watermelon, crusted garlic, rye and berries are cultivated in this aimag.

Many species of animals inhabit here including endangered species like wild ass, 2 humped wild camel and saiga anteloppe. Therefore Bulgan river, Khukh Serkh Mountain area are recorded as strictly protected area. Khar Nuur lake area is home to 9 out of 23 endangered species of mammals that are included in Mongolian Red Book such as saiga anteloppe, black tailed gazelle, bulrush pig and others. Ornithologists have determined that there are about 200 species of birds of 35 genus, 17 families in Khar Nuur lake basin. Out of that 134 species migrate from tropical countries, 123 lay eggs, 49 stays in winter and 20 are pass through. The 14 of all 19 kinds of birds, that are listed in the Mongolian Red Book such as Dalmatian pelican, spoonbill, whooper swan, swan goose, wild goose, white tailed sea eagle inhabits the area. There are approximately 330 species of vertebrates and 90 of them are mammals, 220 are birds, 11 are reptiles, 8 are fish and 1 is amphibian. Globally endangered species such as Altai wild sheep, mountain goat, Przewalski's horse (Equus przewalskii), Asian beaver, leopard, lynx, mazaalai the gobi bear, 2 humped wild camel, agama (type of large lizard), and pheasant, are all inhabit here. These globally endangered animals are spread through the Khovd aimag's 3 strictly protected areas and are protected by the state. In 1965, the Bulgan River basin which is abundant in beavers was registered as strictly protected area. In the territory between the Dashvaanjil mountain and the republics border, over 104-134 beavers of 26 groups were counted. Also many rare birds such as vulture, hawk, lammergeyer, eagle, buzzard, Altain snowcock, goose, ruddy shelduck are well populated in the area. Two kinds of a grebe, 3 kinds of a heron, 4 of a duck, 10 of a goose, 2 of an eagle, 5 of a falcon, 2 of crane, 6 of a sandpiper, 6 of a seagulls, 2 of a swallow, 4 of a pipit, 4 of a wagtail, 3 of a shrike, 4 of a wheatear, 3 of a sparrow and 2 kinds of a crow are found in this aimag. Snowcocks mainly inhabit the Jargalant, Tsambagarav, Munkh Khairkhan, Sutai, Baatar, Googiin mountain and its branch mountain areas.