It is in Komodo District.[2] It is the capital of the West Manggarai Regency, one of the eight regencies on Flores Island.

Once a small fishing village, Labuan Bajo (also spelled Labuhanbajo and Labuanbajo) is now a tourist center as well as a centre of government for the surrounding region.[3] Roads link Labuan Bajo to other towns across Flores such as Ruteng, Bajawa, Ende and Maumere. The town is small and can easily be traversed on foot in 15 minutes. Mirror stone cave (gua Batu cermin) is only 5 km north-east of the marina.[4][5] Nearby Labuan Bajo are several waterfalls, trekking, and diverse beaches. Wae Rebo Village, 5 hours away by car and another 4.5 km on foot, can be visited to learn about the indigenous culture of the area. This World Heritage site is known for its traditional houses called Mbaru Niang.

Beside these, 19 other places around Labuan Bajo are frequently listed as touristic sites: Gili Laba, Rinca Island, Komodo Island, Kanawa Island, Padar Island, Lingko Rice Fields, Kelor Island, Kelimutu Lake, Ranko Cave, Cunca Lawang, Bena Traditional Village, Manta Point, Pink Beach, Bidadari Island, Seraya Island, Kalong Island, Melo Village, Pede Beach, and Sano Nggoang Lake.[8] Altogether there are 128 islands (of which by far the largest are Komodo and Rinca Islands) within the Komodo District.

Labuan Bajo is the gateway to the nearby Komodo National Park on and around Komodo Island and Rinca Island, both home to the famous Komodo dragons. The park is a World Heritage Site. Its islands offer good scuba diving.

Every evening at Kalong Island (in the bay on the east side of Komodo island[9]), thousands of flying fox bats (burung kalong in Indonesian) rise from the mangroves and form a massive cloud that crosses the strait to Flores island in search of food.

There are numerous diving sites in the islands close to Labuan Bajo - but in some places currents can be dangerously strong and much carefulness is required - notably at Batu Bolong site (whose name means "hole in the rock", in the Linta Strait), also called "Current City" for that reason[10][11] To the north are Sabolon kecil, Sabolon besar and Seraya kecil; to the west are Sebayur (outside Komodo park), Tatawa besar and Tatawa kechil (within the park[12]), Karang Makassar (Manta Point),[10] Kanawa,[13] Mauan,[14] The Cauldron[15] and many more.