It is well known for its outdoor activity centres and the nearby Cregennen Lakes. The Arthog Outdoor Education Centre is owned by Telford and Wrekin Council and is primarily used in term-time by schools from the Shropshire and Telford & Wrekin Local Education Authorities. The other outdoor activity centre, Min Y Don, has been family owned and run since the 1950s. They too are primarily used in term-time by schools from the Midlands, but are also heavily involved with local community work too.
In 1894, Solomon Andrews, a Cardiff entrepreneur, bought land overlooking the Mawddach estuary. On the site he completed Mawddach Crescent in 1902. The row of terraced properties was the start of a purpose-built holiday resort he intended for the area. However the planned development went no further because the surrounding land proved unsuitable for urban planning. During the Second World War, the Royal Marines commandeered Mawddach Crescent. It became known as Iceland Camp. The marines also built huts on nearby Fegla Fawr, where the foundation bases can still be seen between the trees above the estuary.
The village was served by Arthog railway station (on the Barmouth - Ruabon line) until the complete closure of the line in 1964. The line is now a footpath known as the Mawddach Trail, and is popular with both walkers and cyclists.