Lothal was located in Gujarat, near the Gulf of Khambhat, on a tributary of the Sabarmati River.

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On a branch of the Sabarmati River in Gujarat, close to the Gulf of Khambhat, was the location of Lothal. It was a short distance from areas where raw resources, like semi-precious stones, were easily available. A prominent centre for manufacturing metal, shell, and stone artefacts was located here. A storehouse was also located in the city. This storage facility had numerous seals and sealings (the impression of seals on clay). Stone shards, partially finished beads, bead-making equipment, and finished beads were all found; this site was most likely a bead-making workshop.

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