Encino is situated in the central portion of the southern San Fernando Valley and on the north slope of the Santa Monica Mountains. It is flanked on the north by Reseda and the Sepulveda Basin, on the east by Sherman Oaks, on the southeast by Bel-Air, on the south by Brentwood and on the west by Tarzana.

The local economy provides jobs primarily in health care (including one of two Encino-Tarzana Regional Medical Center hospitals), social services, and professional services (accounting and financial services, real estate, and legal) sectors. There are approximately 3,800 businesses employing about 27,000 people at an annual payroll of $1.4 billion.