town, north-central Algeria. It is located between el-Hodna Depression (a salt lake) and the mountains of the Saharan Atlas. Although north of the Sahara, Bou Saâda is a true oasis, spread along the left bank of the Bou Saâda Wadi and standing in pleasant contrast to the nearby barren Ouled Naïl Mountains and the often dry salt marsh. The town's old walled quarter (ksar) of arched, winding alleyways lies north of the modern French-built sector. Farther north, thousands of date palms are watered from the steep-banked, permanent stream.

Long an important caravan centre between West Africa and the Mediterranean, the town supports a daily market of jewelry, metalwork, carpets, and the long, tapering bousaadi knives. Both Arab and Berber nomads frequent the town to trade and rest. Bou Saâda (meaning “place of happiness”) is a popular winter resort. A textile mill is located in the new quarter. Pop. (1998) 97,031.