Karlaby is located around the three-way junction leading to Ö. bucket leaves, Tommarp and Simrishamn. The settlement consists of a few large farms and a number of smaller houses.
For many, Karlaby is now synonymous with the high-class hotel and restaurant Karlaby Kro, where many people go to enjoy peace and quiet and gourmet food. To the north-east, a small-scale landscape spreads out with pastures, wetlands and small lakes.
There are several so-called rich marshes with unique orchid flora and the area also has a rich bird life. The distance to Simrishamn with schools and other services is around one mile and bus connections are available. The surroundings are mostly arable land, but Gyllebosjön with popular swimming is within cycling distance.
