Abstract. We study the Log(N)-Log(S ) and X-ray luminosity function in the 2-10 keV energy band, and the spatial (3-D) distribution of bright, L X ≥ 10 34 −10 35 erg s −1 , X-ray binaries in the Milky Way. In agreement with theoretical expectations and earlier results we found significant differences between the spatial distributions of low (LMXB) and high (HMXB) mass X-ray binaries. The volume density of LMXB sources peaks strongly at the Galactic Bulge whereas HMXBs tend to avoid the inner ∼3−4 kpc of the Galaxy. In addition HMXBs are more concentrated towards the Galactic Plane (scale heights of ≈150 and ≈410 pc for HMXB and LMXB correspondingly) and show clear signatures of the spiral structure in their spatial distribution. The Log(N)-Log(S ) distributions and the X-ray luminosity functions are also noticeably different. LMXB sources have a flatter Log(N)-Log(S ) distribution and luminosity function. The integrated 2-10 keV luminosities of all X-ray binaries in the Galaxy, averaged over 1996-2000, are ∼2−3 × 10 39 (LMXB) and ∼2−3 × 10 38 (HMXB) erg s −1 . Normalised to the stellar mass and the star formation rate, respectively, these correspond to ∼5 × 10 28 erg s −1 M −1 for LMXBs and ∼5 × 10 37 erg s −1 /(M yr −1 ) for HMXBs. Due to the shallow slopes of the luminosity functions the integrated emission of X-ray binaries is dominated by the ∼5-10 most luminous sources which determine the appearance of the Milky Way in the standard X-ray band for an outside observer. In particular variability of individual sources or an outburst of a bright transient source can increase the integrated luminosity of the Milky Way by as much as a factor of ∼2. Although the average LMXB luminosity function shows a break near the Eddington luminosity for a 1.4 M neutron star, at least 12 sources showed episodes of super-Eddington luminosity during ASM observations. We provide the maps of distribution of X-ray binaries in the Milky Way in various projections, which can be compared to images of nearby galaxies taken by CHANDRA and XMM-Newton.