Ilulissat serves as the municipal seat and largest town within the Avannaata municipality in western Greenland. Situated on the eastern shore of Disko Bay, it lies approximately 350 kilometers north of the Arctic Circle. The settlement is positioned directly adjacent to the Ilulissat Icefjord, a UNESCO World Heritage Site that defines its dramatic coastal geography and provides a backdrop of enormous icebergs from the northern hemisphere's most productive glacier.

The area was inhabited by Inuit peoples from prehistoric times, with evidence of Saqqaq settlement around 1500 BC. The town was established as a trading post by Jacob Severin's company in 1741 and named in honor of the Battle of Jacobshavn where Danish forces defeated Dutch whalers. It later became home to the Zion Church, built in the late 18th century as Greenland's largest man-made structure at the time.

The city is defined by its proximity to the Sermeq Kujalleq glacier and the surrounding ice-filled fjord. Notable landmarks include the Ilulissat Icefjord, where icebergs drift into Disko Bay, and several museums such as the Ilulissat Museum featuring explorer Knud Rasmussen and the Inuit Art Museum. The town also features the Zion Church and the Icefjord Centre, which exhibits local wildlife and human history.

Tourism is now the town's principal industry, making Ilulissat the most popular tourist destination in Greenland. Visitors are drawn to the spectacular icebergs, sled-dog culture, and polar exploration heritage associated with notable figures like Knud Rasmussen. The area offers hiking trails, boat tours, and cultural sites that highlight the region's unique Arctic environment and historical significance.

Ilulissat has a population of 4,737 as of 2022. The economy relies heavily on tourism, supported by connections via Ilulissat Airport and the Arctic Umiaq ferry service. The town experiences a tundra climate with long, cold winters and short, cool summers, receiving only 271 millimeters of precipitation annually while remaining one of Greenland's sunniest settlements.