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The Lighthouse is the home of the Captain and Sprocket and the central framing location on the UK version of Fraggle Rock. In contrast to Doc's Workshop, the lighthouse is isolated on an island. Thus, the Captain receives Uncle Traveling Matt's postcards from the passing mail boat and communicates with any friends or acquaintances, such as Commander Ponsonby, solely through mail and telephone. The lighthouse interior is relatively similar to Doc's workshop, however, one key addition is a chess set.

Throughout his time in the UK version, the Captain refers to the Lighthouse as "Fraggle Rock Lighthouse", implying that the name of the island on which the lighthouse is situated is in fact called "Fraggle Rock."

Due to Fulton MacKay's death in 1987, the lighthouse is taken over by the Captain's nephew, P.K., in the fourth season, and then to B.J. (Berwhistle Jr.) during the sixth season.

In the UK version of "Change of Address," the lighthouse becomes automated, so B.J. and Sprocket move to a castle, where they find the second Fraggle hole.

The exterior shots were of St. Anthony's Head Lighthouse at Falmouth Harbour in Cornwall, England.