The Falathrim were Sindar Elves living in the Falas of Beleriand. They were originally part of the Teleri, but they were persuaded to remain on the western shores of Middle-earth by Ossë, and by their love of the coasts of Beleriand. They became great shipwrights.

They were the first mariners, and the first makers of ships, and were led by Círdan the Shipwright. They initially dwelt in the Havens of Eglarest and Brithombar but relocated to the Isle of Balar after their Havens were overrun by Orcs and taken by Morgoth. After the War of Wrath, the Falathrim sailed south to the Gulf of Lune in Lindon where the Grey Havens were then built.

It is said that the ships of the Falathrim are magical, and that they alone could reach the Undying Lands after the Change of the World when Middle-earth and the Undying Lands were pulled apart forever.