Murthly (Scottish Gaelic Mòrthlaich) is a village in Perth and Kinross, Scotland. It is located on the south bank of the River Tay, 7 kilometres (4.3 mi) south-east of Dunkeld, and 15 kilometres (9.3 mi) north of Perth. Perth District Asylum, later known as Murthly Hospital, was opened in the village on 1 April 1864 for 'pauper lunatics'. It was the second district asylum to be built in Scotland under the terms of the 1857 Lunacy (Scotland) Act. It closed in 1984 and was later demolished. A stone circle is located within the village, in the former grounds of the hospital.