Mugma is located at 23.77°N 86.73°E and has an average elevation of 132 metres (433 feet).
Mugma comes under the district of Dhanbad. It is a famous city known for its coal mines, and a reputed educational institution the De Nobili School that was named after a Christian, Roberto de Nobilli. Roberto Nobili was said to have mastered Sanskrit way back in the 16th century.
Mugma is situated on the banks of the Barakar River. The city of Dhanbad is situated to the northwest at a distance of 35 kilometers. Mugma is located to the northwest of Nirsa at a distance of 10 kilometers. The nearest connecting points are the Ranchi Airport and the Mugma Railway Station on the Dhanbad - Barachak rail route.
The nearest city to Mugma is the city of Dhanbad which lies 35 kms to its west.