Located in the mountains of Snowdonia, the town was once a major centre of the slate mining industry. This industry declined during the early 20th century. The town's economy is now largely dependant on tourism. Although the town is in the centre of the Snowdonia National Park, the boundaries of the Park are specifically arranged to omit the town with its substantial slate waste heaps from the Park.
Blaenau Ffestiniog boasts several major tourist attractions, including the Ffestiniog Railway, and also the Llechwedd Slate Caverns a former slate mine open to visitors.