Šilutė (pronunciationⓘ; previously Šilokarčiama; German: Heydekrug) is a city in the south of the Klaipėda County in western Lithuania.

[1] Šilutė's origin dates to an inn (Krug, locally karčema) catering to travelers and their horses which was located halfway between Klaipėda and Tilsit (Tilžė).

The town was a gathering place for peasants from nearby Samogitia and Curonian and Prussian fishermen from Rusnė, Karklė [lt], Nida, and Lesnoye [de].

[4] Among the goods sold at the fairs were fish (e.g. to Warsaw and Saint Petersburg), pigs (to Berlin), vegetables, cattle, horses.

The settlement was amalgamated with the villages of Werden (Verdainė), Szibben (Žibai), and Cynthionischken (Cintjoniškiai) in 1910, although it still did not receive city rights.

Newly founded enterprises are also prospering: Šilutės Girnos (combined fodder); Žibai; Grabupėliai (meat processing); and EKSA, a subsidiary of the alcohol producer Stumbras.