For a small country, Albania is characterised by a considerable wealth of terrestrial and marine ecosystems and habitats with contrasting floral, faunal, and fungal species, defined in an area of 28,748 square kilometres. Most of the country is predominantly of Mediterranean character, comprehending the country's center and south, while the alpine affinity is more visible in the northeast.

Apart the diversity of topography and climate, the direct proximity of Albania to the Mediterranean Sea and the significant location within the European continent have created favorable conditions for appearance of a vast array of flora, fauna and funga with an immense quality, which led the country to be recognised as an important biodiversity hotspot in the continent. The number of globally threatened faunal species in Albania is high with an integral part of more than 181 species, ranking seventh in the Mediterranean Basin.

Albania is predominantly mountainous and hilly with the rapid landscape change from marine to alpine within a short distance. Only one-third of the country consists of lowlands that sprawl across the west of the country facing the Mediterranean Sea with a coastline length of about 476 km (296 mi). The mountain chains consequently cross the length of the country from north to south, featuring the Albanian Alps in the north, the Sharr Mountains in the northeast, the Skanderbeg Mountains in the center, the Korab Mountains in the east, the Pindus Mountains in the southeast and the Ceraunian Mountains in the southwest stretching alongside the Albanian Riviera.

The hydrographic network of Albania is composed of lakes, rivers, wetlands, seas and groundwaters. There are about 250 lakes of different origins, including tectonic, glacial and fluvial lakes. Among the most important is the lake of Shkodër, the largest lake in Southern Europe, followed by Ohrid, which is considered one of the most ancient lakes in the world. The rivers also have a valuable effect on the local coastal biodiversity (or wildlife). There are 152 rivers in the country, most notable amongst them Drin, Vjosa, Shkumbin, Mat, Ishëm and Osum. The coasts along the Mediterranean Sea are home to various lagoons including Karavasta and Narta. Protected areas belong to the most essential instruments of nature conservation. 799 types of protected areas are designated in Albania, spanning 5.216,96 square kilometres. Amongst them are 14 national parks, 1 marine park, 4 Ramsar sites, 3 World Heritage Sites, 45 important plant areas, 16 important bird areas and 786 protected areas of various categories.

The country of Albania is part of the Boreal Kingdom and stretches specifically within the Illyrian province of the Circumboreal Region. Its territory can be conventionally subdivided into four terrestrial ecoregions of the Palearctic realm. The Illyrian deciduous forests stretch along the Albanian Adriatic and Ionian Sea Coast in the west across the Mediterranean Basin, while the Pindus Mountains mixed forests occur in the Eastern and Southeastern Mountain Ranges in the east. The Dinaric Mountains mixed forests cover most of the Albanian Alps in the north, while the Balkan mixed forests extend across the eastern end of the range.

Forests are the most widespread terrestrial ecosystem in Albania. They represent an essential functional and aesthetic component on 36% of the landscapes in the country. The forests of northern Albania are similar to those of Continental Europe, in contrast, the forests of southern Albania share similarities with those of the Mediterranean Basin. Forests can take many forms, depending on their latitude, soil, rainfall and prevailing temperatures. In Albania forest cover is around 29.% of the total land area, equivalent to 788,900 hectares (ha) of forest in 2020, up from 788,800 hectares (ha) in 1990. Of the naturally regenerating forest 11% was reported to be primary forest (consisting of native tree species with no clearly visible indications of human activity) and around 0% of the forest area was found within protected areas. For the year 2015, 97% of the forest area was reported to be under public ownership, 3% private ownership and 0% with ownership listed as other or unknown.

The concentration of deciduous trees dominates in the country's forests, ranging from almost 56.8% or 6,093 square kilometres of the forested territory. Oak represents an important natural forest resource in Albania with 32.1% followed by beech with 18.4%. There are 12 oak species found in Albania distributed all across the country's territory from north to south, and east to west.

The coniferous forests cover 1,756 square kilometres which constitutes 16.4% of the country's forested total area. Although black pine dominates and is among the most significant tree species in the country, occupying a surface area of roughly 10.2%. It is primary found in the central mountain range but also scattered in the northern and southern mountain range. Silver fir accounts 1.4% of the conifers with 152 square kilometres, commonly found in the slopes and valleys of the mountains and alongside the Albanian Adriatic and Ionian Sea coasts in the west.