The market town of Prad is situated on the southern bank of the Etsch River, in the upper Vinschgau Valley. The central village together with the farmhouses on the slopes of the Prader Mountain is situated east of the Sulden Torrent, which runs through the narrow Suldnertal and has deposited a gentle fan in the main valley. The village of Agums and Lichtenberg, as well as the scattered farmhouses on the south-eastwardly exposed slopes are located further up the river at the edge of the fan. Prad has turned from a rural farming community into a commercial/industrial based village since the 1950's. Due to its proximity to the skiing areas of Sulden and the road up the Stilfser Joch, tourism has gained some importance too.