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Lobethal is a town in the Adelaide Hills area of South Australia. It is located in the Adelaide Hills Council local government area, and is nestled on the banks of a creek between the hills and up the sides of the valley. It was once the centre of the Adelaide Hills wool processing industry, which continued until around 1950. The mill buildings are now used by a number of cottage industry and handcraft businesses. At the 2006 census, Lobethal had a population of 1,836 which had grown to 1957 by the 2011 census.The town is famed during the Christmas season for its display of Christmas lights and decorations, which have attracted visitors from around the state since the 1950s.