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Lydham is a small village and civil parish in Shropshire, England.
Lydham is situated on the junction of the A488 and the A489 main roads, about 2 miles (3.2 km) north of Bishop's Castle.
There is a market held on Fridays in the village hall. Close by is the small village and separate parish of More.
Two miles to the south-east, in the parish of Lydham, are the fragmentary remains of Lea Castle, adjoining a modern farmhouse at Lower Lea.
Lydham was served by the now defunct Bishops Castle Railway which closed in 1935. The station was nearby at Lydham Heath.