Hengoed sits south of Bargoed in Caerphilly County, South Wales. It is located across the valley from the village of Maesycwmmer and is close to towns and villages such as Pontllanfraith, Blackwood, Ystradmynach, Abercynon, Bedwas and Caerphilly. The village centre has a general store, post office and linear park.
The Rhymney Valley Ridgeway Footpath crosses the River Rhymney at Hengoed then meanders through the town on its way to Gelligaer.
Close by is Parc Penallta Country Park, which includes beautiful woodland and parklands. Sultan the pit pony, better known as Britain's largest figurative earth sculpture, can be found here, and many trails lead you to exciting parts of the park, where Lapwings and Skylarks can be seen in their natural habitat.