Lyø is one of the islands of the South Funen Archipelago, located south of the larger island of Funen, in southern Denmark.

It covers an area of 6 km2 (2.3 sq mi) and has 81 inhabitants.

The setting is dominated by old farmhouses, large trees and low stone walls, surrounding five ponds (originally 12).

The small harbour is located approximately 1 kilometre from the village.

Ø-Færgen operates a ferry between Faaborg on Funen, Avernakkeø and Lyø.