Yinchuan lies in the middle of the Yinchuan plain. It is sheltered from the deserts of Mongolia by the high ranges of the Helanshan to its west. The Yellow River runs through Yinchuan from southwest to northeast. It has a temperate continental climate with an annual average temperature of 8.5C, and has 158 frost-free days. Annual rainfall averages 200 millimeters.

The main mineral deposits in Yinchuan are phosphorus, limestone, marble, diabase, and dolomite.

Industries include machinery, chemical, textile, construction material, food processing. Yinchuan Tire Plant is a major tire plant of China. The chief farm products of Yinchuan are rice, wheat, corn, beet, watermelons, grapes, apples, and Chinese wolfberry fruit.

Rail and road transportation facilities in Yinchuan are well developed. Air routes link Yinchuan with other major cities throughout China, including Beijing and Xian.

Yinchuan is a historical and cultural city. It was once the capital of the Western Xia, a mysterious kingdom founded during the 11th century (1038-1227). Yinchuan has many ancient relics, including the Xixiawangling tomb, the Haibao Pagoda, and the Baisikou Pagoda. The special locally-made products are Helanshan stone sculpture, Chinese wolfberry fruit wine, and fur.