Falls Mills is an unincorporated community and census-designated place along Virginia State Route 102 in Tazewell County, Virginia, United States and is located at the mouth of the valley of Mud Fork creek.

Through the mid- to late 1900s the lake was a summer resort area with boating, fishing and cabins.

May surprised a Union raiding party led by Lt. Col Freeman E. Franklin.

The Union cavalry was chased from its bivouac in nearby Brown's Meadow, where it was preparing to burn the Falls Mill, and fled north toward Abbs Valley.

Brigadier General John Stuart Williams' Confederate cavalry struck the Union raiders as they withdrew up the valley, causing them to abandon captured livestock and slaves.