The large village of Gnadenwald is situated on a terrace north of the Inn River, on the slopes of the Bettelwurf Mountain. The hamlets of St. Martin and St. Michael with their churches are the two small centres of the village. Scattered, detached farmhouses form the hamlets of Außerwald, Innerwald, Brantach and Mairbach. Due to the sun-exposure more and more people have built their houses in Gnadenwald in the last decades leading to an increase in commuter figures. Because of the large dimension of Gnadenwald, the development of infrastructure still needs to be improved. Gnadenwald is a very popular recreation area for the greater Innsbruck. The guesthouse of Hinterhornalm, which can be reached on a toll road, and the picturesque Walderalm are very popular.