The Konoha Cemetery is the place where the citizens of the village are buried after dying. Many famous shinobi, such as Hiruzen and Asuma Sarutobi, are buried there. The cemetery has also a sculpture at the front, representing the Will of Fire of the village. The sculpture has the kanji for Hokage (火影, Literally meaning: Fire Shadow) inscribed on its base.
As seen during the anime, the cemetery maintenance is often the Academy Student's responsibility, which includes cleaning and placing fresh flowers on the graves. The anime also showed that the Cemetery is situated around the village, presumably in the outskirts.
Kabuto assaulted the graves to collects pieces of the remains of the most famous shinobis of Konoha buried in this cemetery.