Dhërmi is one of the nine villages of the Himara region/municipality, in Albania. The village lies 42 kilometers south of the city of Vlorë and about the same distance north of the southern city of Sarandë. The village is built on a slope of the Ceraunian Mountains, at approximately 200 meters in altitude. The mountains descend to the southwest into the Ionian coast and Corfu in the distance to the south. Nearby is the village of Palasë.

The inhabitants of Dhërmi speak a variant of the Himariote dialect, characterized by archaic features not retained in standard Greek. Recently, the coastal area has seen a boom in the construction of accommodation facilities, such as wooden villa complexes. In addition, it is considered by the Albanian youth as a nightlife destination.