The castle lies on a small promontory on the northern shores of Loch Fyne, around 5 kilometres (3.1 mi) north-east of Inveraray, Argyll.

The old castle, and remnants of McNaughton crannógs, can still be seen on the lochan known as the Dubh Loch at the head of Glen Shira.

Since the MacNachtans were designated 'of Dunderave' from as early as 1473, the place-name appears to have moved with the clan from the Dubh Loch.

It has been suggested that the name derives either from Dun-an-Rudha, meaning 'The Knoll on the Promontory', or else from Dun-da-Ramh, 'The Castle of Two Oars'.

[2] The castle was restored and remodelled in 1911 by Sir Robert Lorimer relandscaping the gardens at the same time.