Aberarth was involved in the shipbuilding industry before 1850, but the town faded with the decline of the industry.
It has some welcome visitors from the wild bird community, the red kite, peregrine falcon, chough and stonechat are some of the species to be found in the locality.
The beach, while covered with large pebbles, is very popular with surfers at certain times of the year.
In 2005, a public footpath and cycle lane was finished connecting Aberarth to its larger neighbour Aberaeron.