Lhasa prefecture-level city covers an area of close to 30,000 km2 (12,000 sq mi). It has a central area of 544 km2 (210 sq mi) and a total population of 500,000; 250,000 of its people live in the urban area. Lhasa is home to the Tibetan, Han, and Hui peoples, as well as several other ethnic groups, but overall the Tibetan ethnic group makes up a majority of the total population.
Located at the bottom of a small basin surrounded by the Himalaya Mountains, Lhasa has an elevation of about 3,600 m (11,800 ft) and lies in the centre of the Tibetan Plateau with the surrounding mountains rising to 5,500 m (18,000 ft). The air only contains 68% of the oxygen compared to sea level. The Kyi River (or Kyi Chu), a tributary of the Yarlung Zangbo River), runs through the southern part of the city. This river, known to local Tibetans as the "merry blue waves,", flows through the snow-covered peaks and gullies of the Nyainqêntanglha mountains, extending 315 km (196 mi), and emptying into the Yarlung Zangbo River at Qüxü, forms an area of great scenic beauty. The marshlands, mostly uninhabited, are to the north. Ingress and egress roads run east and west, while to the north, the road infrastructure is less developed.
Lhasa features a cold steppe climate (Köppen BSk). Due to its very high altitude, Lhasa has a cool, dry climate with frosty winters, yet the valley location protects the city from intense cold or heat. It enjoys nearly 3,000 hours of sunlight annually and is thus sometimes called the "sunlit city" by Tibetans. The coldest month is January with an average temperature of −1.6 °C (29.1 °F) and the warmest month is June with an average temperature 16.0 °C (60.8 °F) with highs of 23.2 °C (73.8 °F). The annual mean temperature is 8.0 °C (46.4 °F) and the overall temperature annually can fluctuate between −16.5 °C (2.3 °F)at very lowest in January to 30.4 °C (86.7 °F) in June. Lhasa has an annual precipitation of 426 millimetres (16.8 in) with rain falling mainly in July, August and September. The driest month is January at 0.8 millimetres (0.03 in) and the wettest month is August, at 120.6 millimetres (4.75 in)The rainy season is widely regarded the "best" of the year as rains come mostly at night and Lhasa is sunny during the daytime.