Lostallo is situated very idyllically, in the middle of the Mesolcina valley. Here the river Moesa flows through a flat area. The valley is surrounded by several mighty mountains, such as the Piz di Groven, which reaches 2690 meters above sea level.
Lostallo itself has several houses on which historical frescoes can still be seen. Every year in July Lostallo hosts the music festival "Shankra" Psychedelic Trance "Shankra".