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Ulfstead is a small village located northwest of Ffarquhar, almost in the centre of Sodor.

The North Western and Mid Sodor Railways both had plans to extend their lines to Ulfstead; the North Western from Ffarquhar and the Mid Sodor by a branch line via Ulfstead Road. The Mid Sodor's project was abandoned due to the cost of building the line through the Cas-ny-Hawin valley.

The town was built as a fortress, but fell into disrepair after the Scots were sacked. The ruins attract archaeologists as it is all of one period.

Ulfstead first appeared in the television series in the third season. As the village itself is set deep within the mountains, it is susceptible to being snowed in. Once Harold had to drop hot food and drinks for the villagers.

The nearby castle is the seat of the dukes of Sodor, though now the duke lives on the outskirts of town while the castle is on loan to the Island Record's Office at Suddery.

Ulfstead Mine and Toby's Flood Bridge are also located somewhere near here.