Although called a palace, it is understood to have been the hunting seat of Lord St David in the early 14th century. The Lydstep hamlet contains the Grade-I listed ruins of a " Bishop's Palace" across from the road from the Lydstep Arms. In ancient times the Kings of Dyfed and several Welsh saints have been connected with "Lis Castell" Penally Abbey was located nearby. It is a notable private holiday resort and has a beach which can be reached from Manorbier. It lies along the A4139 road, west by road from Tenby and Penally and west of Manorbier. The hamlet of Lydstep is separate from Lydstep Haven, lying just to the west of the beach and caravan park resort, but the area is generally known as Lydstep Haven. Lydstep Haven is a village and beach holiday resort in Pembrokeshire, known in ancient times as Lis Castell.
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