The village of Banya is located in the Razlog Valley, at approximately 5 km from both the towns of Razlog and Bansko. The narrow-gauge railway Septemvri – Dobrinishte passes nearby and has a stop at the village. The 72 warm mineral springs with temperature between 45 and 58°С and its picturesque location are a prerequisite for the establishment of the village as a spa resort. The rivers of Malka Glazne, Pihla and Koneshitsa flow through Banya.

The archaeological findings from the vicinity show that the springs have attracted visitors since ancient times. During the Ottoman occupation, two interesting baths were built in the village. Near the Turkish Bath, there is now an open-air swimming pool that can be visited from June to September. Banya has a well-developed accommodation network open to visitors all year round.

The village has two churches – Sveti Georgi and Uspenie na Presveta Bogoroditsa. The first one (dated 1835) is a three-nave pseudo-basilica with a bell-tower and narthex added later on. Some Bulgarian Muslims also live here, and a small part of the population are Protestants who have their own church.

The Trastenik locality near Banya hosts a private dam and the so-called Hunting Lodge. The traditional village holiday is held on the first Sunday of July, while the second day of Easter is the time of a special liturgy and horse and cart races in the locality of Krushata.