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Bulambuli District is bordered by Nakapiripirit District to the north, Kapchorwa District to the east, Sironko District to the south and Bukedea District to the west. Bulambuli, the district headquarters, is located approximately 30 kilometres (19 mi), by road, northeast of Mbale, the largest city in the sub-region. The coordinates of the district are:01 22N, 34 09E.

Bulambuli District was created by Act of the Ugandan Parliament, in 2009, and became operational on 1 July 2010. Prior to that, the district was part of Sironko District. The terrain in the southern part of the district is mountainous and is prone to flash flooding. The northern part of the district, closer to Nakapiripirit District, is more dry and is prone to clean water shortages.