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Politically unstable throughout the 1980s, peace was achieved in El Salvador in 1992. The agreement between the existing government and leftists rebels paved the way for much-needed reform in El Salvador. Bordering on the northern Pacific Ocean, El Salvador has a coastline of 190 miles (307 kilometers) and is the only country in Central America that does not have a Caribbean coastline. Along the Pacific coast, the climate is tropical. The rainy season, which lasts from May to October, is followed by a six-month dry season. In the uplands, the climate is temperate. El Salvador's terrain is mountainous with a narrow coastal belt and central plateau.

Due to the presence of volcanic activity, El Salvador is sometimes called the Land of Volcanoes. The country is also subject to frequent, potentially destructive earthquakes and hurricanes that damage the environment and threaten human life and property. Nearly a third (31.85 percent) of El Salvador's land is arable. Although 59 percent of Salvadorans live in densely populated urban areas, there are only 30 passenger cars per 1,000 people. Other natural resources include hydropower, geothermal power, and petroleum.

Though it is the smallest country in Central America, El Salvador is the third richest. With a per capita income of $5,100, El Salvador ranks 131st of 232 countries in terms of income. Family income is unequally divided, however; among the population of 6,704,932, the wealthiest 10 percent of the population hold 39.3 of national resources. The misdistribution of resources and the large population of landless peasants form the roots of historical unrest in the country, with implications for the nation's future.

Major environmental issues in include deforestation, soil erosion, and water pollution. Soils are also highly contaminated from improper disposal of toxic wastes by chemical and fertilizer industries. In addition, El Salvador faces a rising threat to the human environment with an HIV/AIDS rate of 0.7 percent. It is estimated that some 29,000 are living with this disease, which has been responsible for 2,200 deaths. A 2006 study by scientists at Yale University ranked El Salvador 73rd of 132 countries on environmental performance. This ranking placed the country below the relevant income group average (67.2) and significantly below the geographic group average (72.3). The lowest scores were received in the areas of biodiversity and habitat protection and air quality. The Salvadoran government has protected 0.4 percent of the land, and particular attention has been paid to the Los Cóbanos Reef and the wetlands of Guija Lake, Olomega Lake, Cerrón Grande, and El Jocotal. None of the 141 bird species endemic to El Salvador are threatened, and only two of the 135 endemic mammal species are endangered.

The Ministry of the Environment and Natural Resources is actively involved in educating Salvadorans in environmentalism. Through the Environmental Law of 1998, the ministry has the responsibility for conservation and protection of flora and fauna, improving air quality, promoting access to clean water and improved sanitation, and integrating the management of water resources and waste management. Under the Joint Declaration Central America–USA (CONCAUSA), the United States provides El Salvador with assistance in environmental planning and policy implementation with the goals of protecting natural resources, conserving biodiversity, encouraging energy development, and reducing pollution levels.

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