Loughgilly lies on the A28 Road to Newry, 4.4 km from Markethill.
It is designated today as a hamlet. (Armagh Area Plan 2004: Armagh District Council Area)
McKay, P A Dictionary of Ulster Place-names (Belfast, 1999) notes:
Barony of Orior Lower
From the Irish Loch Gile 'Lake of brightness/Bright Lake'
Loughgilly is named from Lough Gilly, a small lake partly in the townland of Drummilt and Partly in Creeve. The site of an early church is marked by the modern Church of Ireland parish church in the townland of Cornagrally. Loughgilly Parish has portions in the baronies of Orior Upper and Fews Lower.