It is situated in the New Forest on the western shore of the Solent, approximately 7 miles (11 kilometres) south of Southampton.

The decommissioned Fawley Power Station is also located less than a mile to the south east of the village.

A settlement has existed at Fawley for many centuries, and the village itself was recorded in the Domesday Book.

Modern Fawley is smaller and less populous than its more recently founded neighbours, Holbury and Blackfield, but remains the administrative centre of the parish.

Calshot possesses shingle beaches and attracts significant numbers of tourists and local visitors during the summer months.

[6] The Cadland estate, which stretched down the coast of Southampton Water for nearly eight miles, was the residence of the Drummond family, who owned most of the land in the parish.

[7] It was subsequently demolished with the growth of Fawley oil refinery which is built over much of the old Cadlands estate.

The formerly known Waterside Sports and Social Club (casually known as the Esso club) suffered financial difficulties, however ExxonMobil and Holbury Community Sports Association (HCSA) plan to refurbish the site and keep the changing rooms, tennis courts, and other facilities still running.