Sveti Nikole is situated in the Ovce Pole plain (Ovche Pole, Ovče Pole) in eastern Macedonia. Ovce Pole plain is famous for sheep farming, lamb meat, and dairy products of all kinds. Sveti Nikole is the seat of Sveti Nikole municipality.
According to legend, the town was named after the church of Sveti Nikola, built in the beginning of the 14th century, by the king Milutin in the year 1313. It is said to have been the biggest of all 42 churches in this area at its time.