Mahalchhari and Ramgarh upazilas on the north, Kawkhali (Rangamai) and Fatikchhari upazilas on the south, Nannerchar and Mahalchhari upazilas on the east, Manikchhari and Fatikchhari upazilas on the west.

Lakshmichhari thana was turned into an upazila in 1983. The upazila consists of three union parishads, 16 mouzas and 122 villages.

Lakshmichhari Upazila is located in Khagrachhari District. Upazilla(s)/Thana(s) in Khagrachhari are Dighinala Upazila, Khagrachhari Sadar Upazila, Lakshmichhari Upazila, Mahalchhari Upazila, Manikchhari Upazila, Matiranga Upazila, Panchhari Upazila, Ramgarh Upazila.