Elwood is located at 41°24?49?N 88°6?38?W / 41.41361°N 88.11056°W / 41.41361; -88.11056 (41.413615, -88.110438). The nearest major highways are Interstate 80 to the north and Interstate 55 to the west. The former Route 66 highway passes through the village on the east side. According to the United States Census Bureau, the village has a total area of 2.7 square miles (7.0 km²), all of it land.
As of the census of 2000, there were 1,620 people, 637 households, and 461 families residing in the village. The population density was 597.6 people per square mile (230.8/km²). There were 675 housing units at an average density of 249.0 per square mile (96.2/km²). The racial makeup of the village was 97.59 percent White, 0.02 percent African American, 0.56 percent Native American, 0.31 percent Asian, 0.06 percent Pacific Islander, 0.31 percent from other races, and 1.17 percent from two or more races. Hispanics and Latinos of any race were 4.01 percent of the population.