Shihli Beach is situated on Fongguei Peninsula, down the south end of Magong City, the beach on the southwest side extends over 1km, it is a sand beach of scale in Penghu, as well as the most beautiful lido in Penghu, comparable even against Waikiki in Hawaii; enjoyments including soft white sand, sun bathing, water activities, and snorkeling; in the future, water activities including water-skiing, parasailing and water motorcycle.

There is an earth mound north of Shihli Village, shaped like the shamao, the hat officials wear in the old day called shamao, so the mound was called Shamao Hill; Shihli just happens to sit inside the extended part of the shamao (pronounced as "shih" in Taiwanese), hence the village was named "Shihnei" or "Shihli" (both "nei" and "li" means "inside").