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Iola is located at 37°55′N 95°24′W / 37.917°N 95.400°W / 37.917; -95.400 (37.923, -95.400). The city is situated along the eastern bank of the Neosho River between Deer Creek, to the north, and Rock Creek, to the south, with Coon Creek flowing through the city. Important natural gas fields are in the vicinity. U.S. Route 54 passes through Iola along Madison Street and interchanges with U.S. Route 169 which passes by the east side of the city. The smaller cities of Gas and La Harpe are a few miles to the east along US-54. The tiny city of Bassett lies adjacent to Iola's southern border, and the city of Humboldt is about 7 miles (11 km) to the south along US-169.