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Yeti Village is a village where the yetis reside. It sits at the top of a mountain which, at the beginning of the movie, was thought to be held up by 2 giant mammoths. This is eventually revealed to be false and, instead, there is a Smallfoot village at the foot of the mountain. (No pun intended.)

When explaining the disturbing truth about the Smallfoot to Migo, the Stonekeeper revealed that the yetis didn't always live in the mountains, and once lived below the clouds. They lived and thrived there until they first encountered humans, or what they called, "Smallfoot". They came in peace and welcomed them with open arms, but the humans did not return the sentiment, and instead treated them with prejudice as monsters and began terrorising the yetis, hunting them down and killing them. Fortunately, they were able to escape the humans by climbing up to the mountains, as they knew humans could not survive there like the yetis could. The surviving yetis colonised the mountain and started a village. To protect future generations from being attacked by humans, the first villagers began spreading propaganda to the next generation about mountain being held by mammoths, where there was nothing but a sea of clouds. These lies were then used as laws written in stone (literally) to prevent curiosity to protect the village.

Prior to the main events of the movie, most of the yetis in Yeti Village liked order and stuck to the stones, which were "facts" literally set in stone. However, this changed later on.

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