Bandarban Sadar and Lohagara (Chittagong) upazilas on the north, Naikhongchhari and Alikadam upazilas on the south, Ramu, Thanchi and Alikadam upazilas on the east, Chakaria upazila on the west.

Lama thana was established in 1923 and was turned into an upazila in 1985. It consists of 5 union parishads, 18 mouzas and 247 villages.

Lama Upazila is located in Bandarban District. Upazilla(s)/Thana(s) in Bandarban are Alikadam Upazila, Bandarban Sadar Upazila, Lama Upazila, Naikhongchhari Upazila, Rowangchhari Upazila, Ruma Upazila, Thanchi Upazila.