Set in the heart of Palenville and surrounded by mature landscaping, this special Catskills retreat sits just steps from Kaaterskill Creek, where the sounds of the water can be heard throughout the property. Originally the site of the historic Drummond Falls Inn, remnants of the 19th-century stone foundation remain, offering a rare connection to the area's storied past. Designed for both relaxation and gathering, the home blends rustic Catskills character with comfortable modern living. Vaulted ceilings, abundant natural light, and a dramatic stone fireplace anchor the main living space, while the open floor plan creates an easy flow between the two separate living areas, dining area, and kitchen. Expansive front and rear decks, the latter offering an 8-person hot tub with sweeping views of the property, invite you to enjoy morning coffee, outdoor dining, or simply take in the peaceful setting. A loft library adds charm and flexibility above, while the finished walk-out lower level provides exceptional additional living space, complete with a game area and private guest suite. Outside, the beautifully landscaped grounds offer room to play, entertain, or unwind, with the creek just beyond the yard. From summer evenings on the deck to snowy weekends by the fire, this is a home that can be enjoyed in every season. Ideally located at the gateway to the Catskills, you're minutes from world-class hiking, waterfalls, skiing, mountain recreation, and the vibrant communities of Woodstock, Saugerties, and Hudson. A rare opportunity to own a home that combines history, nature, and the timeless appeal of Catskills living. As an added benefit, the property also has a long proven history as a highly-rated short-term rental with strong year-round demand.