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Fosnavåg is the administrative center of the municipality of Herøy. The city is located on the island of Bergsøya, and it includes the Eggesbønes area on the south side of the island.

Fosnavåg is connected to the nearby village of Kvalsund on the island of Nerlandsøya via the Nerlandsøy Bridge to the west. Fosnavåg is connected to the east by a small bridge to the island of Leinøya, which in turn is connected to the islands of Remøya and Runde via the Remøy Bridge and Runde Bridge. The village of Eggesbønes lies south of the town along the shore of the Herøyfjord, just north of the Flåvær islands and the Flåvær Lighthouse. The Svinøy Lighthouse is located on the very small island of Svinøy, about 12 kilometres west of the island of Skorpa. The large island of Gurskøya lies south of Fosnavåg.

On 7 June 2002, the municipal council voted to give Fosnavåg "city status". This means that ships harbored in Fosnavåg can be registered here instead of in other nearest towns like Ålesund and Ulsteinvik.

Previously functioning mainly as an important fishing port, Fosnavåg has now become a major home for various maritime companies ranging from fishing to shipping, including ship building. Havila Shipping and Rem Offshore are two of the large companies based here. The municipality´s secondary school and the main Herøy Church are both also located here.

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