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Strictly speaking Shanghai is not a province but a municipality but it has the same political status as a province. It is the largest city in China in terms of population and one of the largest metropolitan areas in the world, with over 20 million people. Located on China's central eastern coast near the mouth of the Yangtze River, the city is administered as a municipality with province-level status. Shanghai is also known by the nickname of the "Pearl of the Orient".

Shanghai sits on the Yangtze River Delta on China's eastern coast, and is roughly equidistant from Beijing and Hong Kong. The municipality as a whole consists of a peninsula between the Yangtze and Hangzhou Bay, China's second largest island Chongming, and a number of smaller islands. It is bordered on the north and west by Jiangsu Province, on the south by Zhejiang Province, and on the east by the East China Sea. The city proper is bisected by the Huangpu River, a tributary of the Yangtze. The historic center of the city, the Puxi area, is located on the western side of the Huangpu, while a new financial district, Pudong, has developed on the eastern bank. The vast majority of Shanghai's 6,218 km2 (2,401 sq mi) land area is flat, apart from a few hills in the southwest corner, with an average elevation of 4 m (13 ft).

The city's location on the flat alluvial plain has meant that new skyscrapers must be built with deep concrete piles to stop them sinking into the soft ground. The highest point is at the peak of Dajinshan Island at 103 m (340 ft). The city has many rivers, canals, streams and lakes and is known for its rich water resources as part of the Taihu drainage area.

Public awareness of the environment is growing, and the city is investing in a number of environmental protection projects. A 10-year, US$1 billion cleanup of Suzhou Creek, which runs through the city center, has been undertaken, and the government also provides incentives for transportation companies to invest in LPG buses and taxis. Air pollution in Shanghai is low compared to other Chinese cities such as Beijing, but the rapid development over the past decades means it is still high on worldwide standards, comparable to Los Angeles.

Shanghai has a humid subtropical climate and experiences four distinct seasons. In winter, cold northerly winds from Siberia can cause nighttime temperatures to drop below freezing, and although not usually associated with snow, the city can receive one or two days of snowfall per year. In contrast, and in spite of being the peak tourist season, summer in Shanghai is very warm and humid, with occasional downpours or freak thunderstorms. The city is also susceptible to typhoons, none of which in recent years has caused considerable damage. The most pleasant seasons are Spring, although changeable, and Autumn, which is generally sunny and dry. Shanghai experiences on average 1,778 hours of sunshine per year, with the hottest temperature ever recorded at 40 °C (104 °F), and the lowest at −12 °C (10 °F).[29] The average number of rainy days is 112 per year, with the wettest month being June. The average frost-free period is 276 days.

There are seawalls all along mainland Shanghai's coastline. Large natural mudflats now can only be found around Chongming Island, mainly at Dongtan Nature Reserve, and in Jiuduansha Nature Reserve in the sea off Pudong Airport. These mudflats are under threat from the introduced plant Spartina alterniflora. There are no sandflatx in the Shanghai area.