Liffey Falls State Reserve is nestled within cool temperate rainforest on the slopes of the Great Western Tiers. Framed by the dominant species of Tasmania's cool temperate rainforests - myrtle, sassafrass and leatherwood, the falls are understandably a popular spot among both Tasmanians and visitors alike. A nature walk leads from a picnic area near the carpark down through forests of towering eucalypts and tree ferns to the falls. A number of smaller falls are passed along the way.

The Liffey Falls State Reserve was included within the Tasmanian Wilderness World Heritage Area in 1989, a tribute to the globally significant value of the region. The area reveals a rich human heritage and insights into the forces which shaped the landscape over the past 250 million years.

The picnic area lies within the Liffey Forest Reserve, which is managed by Forestry Tasmania. A short way along the walking track to Liffey Falls you cross into the State Reserve, which is managed by the Parks and Wildlife Service.