Sassafras, in the Dandenong Ranges between Olinda and Ferny Creek, is 35 km east of central Melbourne. It was originally called Sassafras Gully, descriptive of the damp, hilly terrain in which trees described as Sassafras were found.
The gully is Sassafras Creek, a tributary of the Woori Yallock Creek and Yarra River. West of the gully is a ridge on which the Sassafras township is situated. On the other side of the ridge several streams run down to the Dandenong Creek which enters Port Phillip Bay at Carrum.