Strathyre is a village which forms the south-eastern part of the parish of Balquhidder and is within the bounds of the Loch Lomond and the Trossachs National Park.

The district of Strathyre extends from east of Balquhidder, following the Balvag River which flows out of Loch Voil, almost due south to Loch Lubnaig. The Balvag is 8 kilometres in length, almost all of which lies in Strathyre. It falls by around 5 metres between Loch Voil and Loch Lubnaig. The A84 road and the route of the former Callander and Oban Railway run through the valley, as does the old 18th century military road.

The Strathyre Forest, which extends well beyond the limits of Strathyre proper, is managed by the Forestry Commission, forming the eastern-most part of the Queen Elizabeth Forest Park.

The village of Strathyre is largely a Victorian creation, having grown up with the arrival of the railway in the 1870s and the establishment of Strathyre railway station.