The name Ballabeg derives from the Manx Balley Beg which means small homestead; although the spelling is different, it is pronounced approximately the same as the English name.

The hamlet only consists of a farm and a handful of houses, but also is home to the small Ballabeg tram stop which celebrated its centenary in 2005.

When the Manx Electric Railway was built through Ballabeg in 1894 an ancient Celtic keeill and adjoining burial ground were discovered.

The building was used as a schoolhouse, religious chapel and social cottage where the locals would gather to play music and tell stories.

There are areas of mature and newly planted woodland (including a nationally important cliff-side ancient oak forest remnant), gorse, brooghs (headlands) and small dubs or ponds.