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Yr Hen Dderwen is a sheltered wood in the valley of the Afon Morgenau, a tributary of the River Teifi. The wood is mainly coniferous, primarily spruce with mixed broadleaves, particularly along the boundaries and along the river. The understorey is prolific with young broadleaves, including ash, holly, oak, sycamore, hazel, and laurel. Ground cover includes moss, ground ivy, bracken, and ferns, with bluebells, yellow pimpernel, red campion, and wild garlic near the river in the spring. The wood is crossed by several small seasonal streams that feed into the river. The western side of the wood slopes up steeply, while the eastern side is relatively level or gently sloping. The wood is surrounded by a mixture of woodland and farmland, with the Afon Morgenau River forming its eastern boundary.