Chidambaram is located at . It is located close to the shores of Bay of Bengal. The topography is almost plain with forests around the town, with no major geological formation. There are no notable mineral resources available in and around the town. The soil types are alluvial and red that are conducive for crops like paddy, pulses and chili peppers. The temperature ranges from a maximum of 32.7 °C (90.9 °F) to a minimum of 24 °C (75 °F). Like the rest of the state, April to June are the hottest months and December to January are the coldest.
Chidambaram receives an average of 10 mm (0.39 in) annually, which is lesser than the state average of 1,008 mm (39.7 in). The South west monsoon, with an onset in June and lasting up to August, brings scanty rainfall. Bulk of the rainfall is received during the North East monsoon in the months of October, November and December. The average number of rainy days ranges from 35-40 every year.