It experiences a subarctic climate with long, cold winters and mild summers. The average annual temperature is around 35°F (1.6°C), with temperatures often dropping below freezing during winter months.
Ninilchik is surrounded by stunning natural beauty, with the Cook Inlet to the west and the Kenai Mountains to the east. The area boasts several rivers and streams, including the Ninilchik River and Deep Creek, which provide excellent fishing opportunities for a variety of salmon species.
Outdoor enthusiasts flock to Ninilchik for its recreational offerings. Popular activities include fishing, hunting, hiking, and wildlife viewing. The nearby Ninilchik State Recreation Area offers camping, boating, and beachcombing, while the Caribou Hills provide opportunities for ATV riding and snowmobiling in winter. The village also hosts the annual Ninilchik State Fair, showcasing local arts, crafts, and agriculture.
Ninilchik receives approximately mm of rain per year, with humidity levels near 76% and air temperatures averaging around °C. Ninilchik has a plant hardyness factor of , meaning plants and agriculture in this region thrive during a short period during spring and early summer. Most plants will die off during the colder winter months.