Skokholm is an uninhabited island 4 km (2.5 miles) off the coast of south west Pembrokeshire in Wales, lying south of the neighbouring island of Skomer. It is a Site of Special Scientific Interest and part of the Pembrokeshire Coast National Park. The first migratory-bird-marking station in Great Britain was established here in 1927. Skokholm is leased by the West Wales Field Society; in 1946 it was established as Skokholm Bird Observatory, and it is now leased to and managed by the Wildlife Trust for South and West Wales.

The lighthouse is situated on the South West point of the island which has high cliffs rising sheer from the sea to well over 30 m (98 ft) in many places. It forms the landward corner of a triangle of lights, the others being South Bishop and the Smalls (see entries), guiding ships clear of this particularly treacherous stretch of coastline into Milford Haven or up the Bristol Channel.

Before the lighthouse could be built on the island, a jetty had to be constructed in order that building materials could be landed safely; after the station had been completed, this jetty was used for landing stores and supplies, these being carried the 1.5 km (1 mile) to the lighthouse on two small trucks running on a narrow gauge railway. The trucks were originally pulled by a donkey which somehow always seemed to know when a relief day was due because he would deliberately hide often standing motionless under an overhanging rock. The colour of the rock blended perfectly with the donkey's grey coat, and he would just stand there while the keepers walked for miles seeking him. On any other day the donkey would come at a call. The pony which replaced him apparently soon learnt the tricks because he did his best to cause upsets every time he was called upon to pull the trucks, scattering coal and stores all over the place. A tractor was subsequently used for haulage, when relief was by tender from Holyhead, but nowadays a helicopter is used.

This lighthouse was automated in 1983 and is now monitored and controlled from the Trinity House Operations Control Centre at Harwich in Essex.