Llithfaen is one of the highest villages on the peninsula, nestled on the southern slopes of Yr Eifl, the highest range of hills on Llŷn. This gives the village some of the best views around, right across Cardigan Bay to the south and across to the hills further along the peninsula to the southwest.

Despite what seems its remote location, Llithfaen was the first telephone exchange on the peninsula to be enabled for broadband and has a strong community spirit. The village is strung along the B4417 between Llanaelhaearn and Nefyn. Llithfaen is very proud of its Welsh heritage with Nant Gwrtheyrn (Welsh Language and Heritage Centre) just up the road and Tafarn Y Fic (pub), now more of a Welsh Community Centre.