Malaia Commune is located in a mountain area, at an altitude of 460m, and it is surrounded by the Lotru Mountains, Capatanii Mountains and the Lotru River. In addition, it is situated on the national road DN7A (Brezoi – Malaia – Voineasa – Obarsia Lotrului), which forks at Brezoi - Gura Lotrului off the European Route E81/national road DN7 Bucharest – Sibiu – Arad.

The settlement of Malaia was first documented in 1515, but its roots spread back to the days of the free Dacians. According to the legend, all the settlements along the Lotru Valley were named after five famous outlaws : Breazu (Brezoi), Ciungu (Ciunget), Malai (Malaia), Pascu (Pascoaia) and Voinea (Voineasa). The legend also states that whoever drinks water from the Lotru River will return time after time to the area.

The Lotru Valley witnessed many changes over the years, but the most significant one is the development of the Lotru hydrological basin, which commenced during the 1970s. Malaia is therefore located between two artificial lakes and hydroelectric power plants, Malaia and Bradisor. In addition, in 1980, the first Romanian wind farm was installed on the Petrimanu Mountain (1900m), in the Lotru Mountains.

The autumn and winter days are generally sunny, with a bright blue sky. Due to the sheltered location between two mountains, winters in Malaia are mild, with stunning snowy scenery. In both spring and autumn, the colours of the scenery change visibly from one week to another, offering great opportunities for walks and photography.