Algarrobo is situated 37 kilometres east of Malaga . It has four small centres of population: Algarrobo Costa, Mezquitilla and Lagos on the coast, and Algarrobo Pueblo 4 kilometres inland. It lies within the area of Axarquia and on the scenic Route of Sun and Wine (Ruta de Sol y Vino), and has a residential population of 4,600 which increases with tourism along the coast during the summer months.

Algarrobo Pueblo retains a Moorish white village structure with attractive narrow streets bedecked with flowers, plants and splendid panoramic views. The Rio Algarrobo meanders through the village where horses are often found grazing on the banks. The name of the village means carob tree and these can be found in the village and most of the surrounding area. The carob bean is perhaps best known for its use as a healthy option cocoa powder substitute. However the fruit is used in many ways in the food industry and the wood is much prized for carving.

There is an attractive park in the village alongside the large village swimming pool and tennis courts. The roads here are lined with Jacaranda trees which have spectacular purple flowers in early summer. This is a village that you could easily bypass as you drive through it on your way to the mountains. However it is well worth stopping to walk up into the centre of the village to explore further.

Algarrobo Costa, once a fishing village, is now mostly dedicated to tourism with high rise apartment blocks along the sandy beach. Mezquitilla and Lagos however, are still unspoilt sea-side villages with colourful working fishing boats much in evidence. The coastal road is dotted with watchtowers built in the 16th century for defense over the beaches. There are two of these at Algarrobo, the Torre Ladeado and the Torre Derecha and another at the small coastal village of Lagos .