It lies in a sheltered valley on the banks of the River Bechan, 3 miles (5 km) north of Newtown, on the B4389 road.

The site was also possibly previously used by Roman soldiers, and an ancient church was founded there by Saint Beuno in the 6th century.

Bettws Cedewain's Grade II* listed St Beuno's church, which was the location of the village's first schoolroom, contains possibly the only pre-Reformation memorial brass in the county, dedicated to the Reverend John ap Meredyth for his work in planning and building the tower.

[citation needed] The first element in the name of the village is from the Middle English word bedhus, meaning "prayer house", which became betws in Welsh.

National Cycle Route 81 (Lôn Cambria) passes through the village.