It is situated in the Northwestern side of Zamboanga Peninsula bounded on the North by the Sulu Sea, on the South by the municipality of Tampilisan, on the East by the municipality of Salug and on the West by the Municipality of Labason.
The municipality of Liloy embraces 37 barangays within its responsibility. It originally had a total land area of 44,600 hectares. In 1959, however, a huge portion of its territories had been taken away as a result of the separation and creation of the municipality of Salug, and later, the municipality of Tampilisan in 1978. Hence, Liloy currently has only about 12,843 hectares, of which 78% is agricultural (planted with coconuts, corn, rice, and root crop). According to NSO, the total population as of 2010 was 39,015 individuals in 7,648 households.