The Otepää Landscape Conservation Area (or Otepää Nature Park) protects about 230 km² of the rolling moraine hills around the town — the highest country in Estonia, though never more than 300 metres above sea level. The terrain is unusually varied for the Baltic: more than 80 small lakes, beech and spruce forests, bogs, and meadows full of wildflowers in early summer.
A network of marked walking and cycling trails runs through the park, with information panels in Estonian and English. Wildlife includes elk, beaver, roe deer, and an occasional lynx — sightings are uncommon but tracks are everywhere in winter snow. The Pühajärv loop and the trails radiating from Tehvandi are the best starting points.