Banjaluka is located in the northwest part of Bosna and Hercegovina, e.g. Republika Srpska, on 163 m height above sea level. Banjaluka valley is surrounded by mountain peaks of Manjaca, Cemernica, Tisovac and Crni vrh from the south, while the town is bordered with Starcevica (433 m), Banj hill (Sehitluci, 403 m), Sibovi and Krcmarice. The town is located on the both sides of river Vrbas. It is especially interesting fact that in the town three rivers empties into the Vrbas: Suturlija, Crkvena and Vrbanja. Town’s territory takes area of 1.232 km2, and has population of app. 250.000 citizens. About the life on this area in prehistoric time witness rare archeological findings from the time of pal eolith, eneolith and iron era. Area was populated by Illyrian tribe Mezey. About Roman conquering and life in the time of Romans, especially after dalmatian-panonic rebellion (from 6th to 9th year a.c.), could be seen from archeological findings which say that in Banjaluka existed Roman military fortress (Castrum) and civilian settlement (municipium), In many Roman sources settlement named Castra is mentioned on the road Servitium-Salona (Gradiska-Solin). About the life in Banjaluka and its surroundings there are no historical and archeological findings from the time of Goths and Byzantium (5th and 6th century) and early Slavs arrival (6th and 7th century).

Slavs existence in Banjaluka and its surroundings can be seen by archeological findings in settlements called gradina (between 8th and 12th century). Past of the medieval Banjaluka area was studied on the basis of documents and notes given in districts Zemljanik and Vrbas in 13th century, and especial value has a document from 1287 known as Prijezda document. Name Banjaluka is mentioned for the first time in document of Hungarian King Vladislav II Jagelovic, issued in Budim on February 6th, 1494. At this time Banjaluka fort was part of Jajce banovina. Town was not founded by this decree because it allready had castellan (Juraj Mikulasic) who was mentioned in decree. Name Banjaluka is syntagm probably originated from old adjective banj (belongs to ban) and noun luka what means lend close to the river. After Turkish occupation of Banjaluka (1527-1528) Gornji Seher was first developed. In the year 1553 Banjaluka become residence of sandjak-beg. Sandjak-beg Sofi Mehmed pasha built three bridges on Vrbas, hamam (bath), karavan-saraj (stoping place for caravans), han (inn), four mills and 59 shops. During Ferhat-pasha Sokolovic, last sandjak-beg and first begler-beg (1580-84) Donji seher (lower town) was rapidly developed. Banjaluka become residence of Bosnian eyalet which included parts of todays Bosnia and Herzegovina, Serbia, Slavonia and Dalmatia. According to the Berlin congress, July 31st, 1878, Austro-Hungary army occupied Banjaluka.

Two events preceded Austro-Hungarian occupation in 1878: Battle for Banjaluka in 1737 and Bosnianherzegovian rebellion in 1875. In Austro-Hungarian period town was rapidly developed and got European characteristic. Banjaluka become economical, financial, trade, cultural and educational center. By railway and roads Banjaluka was connected with Europe. North from Crkvena arise a town called Varos. Intenzive development and expansion of town came after catastrophic earthquake in 1969. In its development town was confronted with number of disasters: huge fire (1688, 1742 and 1878), plague epidemic (1690, 1732, 1813) and destructive earthquakes (1969 and 1981).