Dounby is a village in Orkney in the north of Scotland on the A986 Road. It features a co-operative store, a doctor's surgery, pharmacy, care home, pub, post office, hairdressers, church and a community school that serves, Dounby, Sandwick, Stenness, Harray, Twatt and Birsay.

Dounby village has grown at the crossroads of what are now the A986 and B9057 close to the meeting point of the 3 parishes of Sandwick, Birsay and Harray (mainly lying in Sandwick).

The West Mainland Agricultural Show (commonly called the Dounby Show) occurs here every August on the Thursday before the Orkney County Show The County show is always the 2nd Saturday in August.