Newcastle is a village in the rural south west of Shropshire, England. It lies at the confluence of the River Clun and the Folly Brook, 3 miles west of the small town of Clun. The B4368 runs through the village, on its way between Craven Arms in Shropshire to Newtown in Powys.

The Civil Parish which covers the village and surrounding countryside, reaches the border with Wales to the north. It is part of the remote and very rural Clun Forest, part of the Shropshire Hills AONB.  Offa’s Dyke and Offa’s Dyke Path run through the area. The parish forms part of the Clun electoral division of Shropshire Council.