Olbersdorf is referred to as the gateway to the Zittauer Mountains. The town has approximately 5.600 residents and is considered a link in the north between the Renaissance city of Zittau and the Zittauer Mountains in the south. Olbersdorf stretches along the valley of the Goldbach, which even in dry times carries enough water to supply the mills built along it (which was invaluable for the millers). The neighboring communities include the city of Zittau to the north and east, the spa town of Oybin to the south, the spa town of Jonsdorf to the southwest, and the municipality of Bertsdorf-Hörnitz to the west.

Together with the three latter towns, Olbersdorf forms an administrative community. From May to October 1999, the 2nd Saxon State Garden Exhibition took place in Zittau-Olbersdorf with the theme 'Landscape after Mining.' Following the flooding of the former lignite mine, the recreation area LEISURE OASIS Olbersdorfer See with a beach and an adjacent campground was created. The steam-powered Zittauer narrow-gauge railway runs through the village from Zittau's main station, continuing to the mountain resorts of Kurort Oybin and Kurort Jonsdorf after the Bertsdorf station. The Zittauer narrow-gauge railcar VT 137 322 was ceremoniously put back into operation on 10.08.2007 after 43 years.