Stanley Lake is located at the base of the Sawtooth Mountains in the Sawtooth National Recreation Area approximately 6.5 miles from the town of Stanley, Idaho. The lake is to the northeast of the base of the 9,860 foot tall McGown Peak and just south of the considerably smaller Elk Peak. Stanley Lake drains into the Salmon River via Stanley Lake Creek and Valley Creek. The lake is 2 miles downstream of Lady Lace Falls on Stanley Lake Creek. Recreational facilities at the lake include three campgrounds with nightly fees, a day use area, a boat launch, and hiking trails.