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Stein is a crofting township, situated on the north eastern shore of Loch Bay, in the west of the Waternish peninsula.

In 1790, the British Fisheries Society planned a fishing port to be designed by Thomas Telford. However, poor management of the project, and the lack of enthusiasm shown by the local crofting population for fishing, meant only a small proportion of the scheme was constructed.

Only a few structures were completed to Telford's design, including a pier, a storehouse and possibly the now-ruined smithy.

The 18th-century Stein Inn is the oldest pub on Skye.

The village of Dunvegan lies approximately 5 miles south along the B888 road. Near the junction of this road with the A850, just 6 kilometres (3.7 mi) from Stein is the Fairy Bridge.

According to tradition as related by R.C. MacLeod one of the chiefs of Clan MacLeod married a fairy; however, after twenty years she is forced to leave him and return to fairyland. She bade farewell to the chief at the Fairy Bridge and gave him the Fairy Flag. She promised that if it was waved in times of danger and distress, help would be given on three occasions.

This flag can be found on display in Dunvegan Castle.

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