The Municipality of Lødingen sits at the top of Vestfjorden, bordering the County of Troms. Lødingen covers the southeastern part of Hinnøya, as well as several smaller islands out toward Vestfjorden. To the west is Øksfjorden, and to the east is Kanstadfjorden.
The service industries are predominant in trade and industry here, and mostly concentrated to the town of Lødingen. Outside of this area, agriculture and fishing prevails. Most farms are small, but there are several larger farms in Vestbygd. This area has significant agricultural production, with an emphasis on animal husbandry, and dairy production, including some goat milk, is the most common.
During some years, when the Lofoten seasonal cod fishery extends far east, the supply of migrating cod is plentiful all the way in to Kanstadfjorden and Lødingen. Outside of the Lofoten seasonal fishery, regular fjord fishing is the norm. During the 1990s, a plentiful supply of herring gave rise to frenzied activity, attracting fishing vessels from all over Norway, as well as Russian buyers. Herring landing plants were also established onshore. There are several fish processing plants in the municipality, in addition to fish farms and a seaweed meal factory.
The Lødingen granite has been used in many of the artworks included in Artscape Nordland.
Offersøy is a popular tourist destination. Lødingen Church is a timber-framed, cross-shaped church, most likely the fourth church building to be erected on the site. It was last rebuilt in 1897. At Nes by Kanstadfjorden there are rock carvings dated to 5000 BC. These are the northernmost known rock carvings in existence.