This small community is located in Klamath County between Lakeview and Klamath Falls, along Hwy 140 and the banks of Fishhole Creek in the Fremont National Forest.

The Japanese actually bombed the United States during World War II and it happened right outside of Bly, resulting in six people dying as a result. Fueled by the Pacific Wind Currents, the Japanese air balloon bombs killed six Americans, five of whom were children, on May 5th, 1945 after tampering with a balloon they found. A band of horses also died when one sunk its teeth into a block of picric acid from a downed balloon.

Bly is home to a school (K through 8), post office, 3 stores, gas station, 3 churches and a pre-school. Older students travel to the high school at Bonanza, 45 miles away. Residents enjoy a wide range of outdoor activities both winter and summer, as well as community sponsored events like basketball, softball, or card parties.