The town of Prades is situated on a plateau around 950 metres above sea level located in the centre of a mountain massif known as the Muntanyes de Prades. The massif belongs to the Catalan Prelitoral Range and is one of the largest mountain groups in the south of Catalonia. The NE-SW-facing municipality extends over 3,300 hectares and the highest point is the 1,203 metre Tossal de la Baltasana, a peak of major importance.

The Muntanyes de Prades stands between the county of Camp de Tarragona on the Mediterranean coast and the inland counties of Conca de Barberà and Priorat. The special mountain characteristics and the height of the massif give it a unique climate which differs from the typical Mediterranean coastal climate and is clearly identified as a high mountain continental climate.

The location of Prades has traditionally meant the town has been somewhat isolated, reached with difficulty by winding roads from the neighbouring towns of Reus (Baix Camp) and L’Espluga de Francolí (Conca de Barberà). This isolation and the difficulty of rapid communication with the county capital (Reus) led to serious economic stagnation throughout the 20th Century. This led to emigration to the cities of the coast, mainly Reus and Tarragona, which offered better employment opportunities.

The Prades economy currently depends on seasonal tourism which is the largest economic sector in the town. Agriculture, especially potatoes and hazelnuts, has decreased significantly in recent decades. Until the 19th century the area around Prades was mined heavily for lead and barite. There were also a number of pous de neu i gel (traditional cold storage and ice production wells) as well as livestock breeding and forestry.