Tălmaciu is situated at the confluence of the Sadu and Cibin rivers, two km before the confluence of the Cibin with the Olt. It lies on one of the main access routes between Transylvania and Wallachia, at the north entrance of the Olt River Gorge; the European route E81 passes through it. Beside the town of Tălmaciu, it also contains the villages: Colonia Tălmaciu, three km towards the north AND Tălmăcel, three km towards the west
The first documents referring to Tălmaciu (Tholmach) are from 1318. After the Saxon colonisation of Transylvania, Tălmaciu was the administrative center for the settlements of Tălmăcel, Boiţa, Turnul Roşu, Racoviţa, Sebeşul de Jos, and Plopi. After 1453 the administrative center was moved to Sibiu. In 1987 Tălmaciu was granted town status.
Because using the Olt pass to the south requires passing through Tălmaciu, it has witnessed numerous historical events:
- The Romans passed through during the battles between the troops of Emperor Trajan and King Decebalus of Dacia.
- 1599: Mihai Viteazu's troops regrouped here before the battle of Şelimbăr.
- 1848: the Czarist troops battled General Bem's army.
- 1916: the Romanian Army used the town to stage the battle for Sibiu.
Industrially, Tălmaciu is home to one of the most important thread manufacturers and spinners in Romania. There are also textile and lumber products manufacturers. The water flowing from the mountains is used for one of the most popular brand of bottled water in Romania: Fântâna.