It is 8 km (5 mi) north of Sligo town on the N15 road on a low gravel ridge between the mountain of Ben Bulben and Drumcliff Bay.

The village is one of several possible locations in County Sligo for the settlement of Nagnata as marked on Claudius Ptolemy's early map of Ireland.

An ancient topographical poem in the Dinnsenchus (Lore of Places) tells how the baskets in the name refer to the wicker frames of a fleet of boats that was once made here.

[citation needed] Lord of Cairbre, Dunadhach, a noble protection, a famous man by whom hostages were held, A pious soldier of the race of Conn (lies interred) under hazel crosses at DrumcliffThe annals mention that in 1225, Amlaib Ó Beólláin, erenach of Drumcliff, a man eminent for generosity and for his guest-house, died this year.

One hundred and twenty of the son of Melaghlin's retainers were also killed throughout Conmaicne and Carbury of Drumcliff, through the miracles of God and St. Columbkille.1355.1 - Conor Mac Consnava, Bishop of Bréifne Kilmore, from Drumcliff to Kells, died.All that remains of the monastery now is an Irish High Cross dating to c. 1100, and a ruined 10th or 11th century round tower, the only one known in County Sligo, The round tower was struck by lightning in 1396.

Although Yeats died in Roquebrune-Cap-Martin, France in January 1939, his remains were brought home to Ireland by the Irish Naval Service and re-interred at Drumcliff in 1948 in the presence of a large number of local people and dignitaries which included the Minister for External Affairs, Éamon de Valera and Seán MacBride, who represented the Government.

[5] His famous epitaph, written in the poem "Under Ben Bulben", reads: Cast a cold Eye On Life, on Death.