Sokobanja is situated in the southeast of Serbia, between mountains Ozren (117 m) and Rtanj (1560 m), on the riverbanks of Moravica, at the height of 400 m above the sea level. Sokobanja is 230 km away from Belgrade and can be reached by the main highway. It is one of the most often visited resorts in the country, and belongs to a group of renowned tourist centers with the longest tradition of organized tourism.

The origin of the lake remains hidden deep in the past. It is known to have dried up on several occasions, always being refilled. A park was established in 1840 when it was discovered that the lake water and mud on the waste land where winds went wild and the sun beat down on all things living had salubrious properties. The health spa's natural environment was fostered. The Great Park has since been redesigned and additional greenery planted, originally occupying an area of more than 86,000 square meters, today taking up about 190,000 m².