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Valley Heights is a minor suburb of the Australian city of Blue Mountains in New South Wales. It is approximately 70 kilometres from Sydney and is located east of Springwood. At the time of the 2006 census, there were 1,337 people living in Valley Heights.

Valley Heights has formed its own section of the ridgeline that has served as the major route west from Sydney since colonial times, and has abundant evidence of pre-colonial occupation. At an altitude of 300 to 320 metres above sea level, the environment is regarded to be particularly favourable for a wide variety of plant life. The indigenous ecological groups are somewhat typical of other Hawkesbury sandstone with shale transition forests, but reflect the local specificity we have come to anticipate in the Blue Mountains, New South Wales. Council reserves and the National Park limit the current development.
Valley Heights contains a train station, a rail museum, and the historic Gatekeepers cottage, where the railway’s gatekeeper resided during the early steam era.

The business district of Valley Heights is centred on and to the north of the Great Western Highway and consists of light industrial and hardware retail services.
Railway Valley Heights is served by an intercity station on the Blue Mountains Line of the NSW TrainLink network.
Valley Heights marks the beginning of the 1 in 33 (3%) gradient portion leading to Katoomba. The incline from Sydney to Valley Heights is 1 in 60 (1.67%). The existence of the roundhouse, which is now the Valley Heights Locomotive Depot Heritage Museum, is due to the attachment of auxiliary engines to uphill trains in the past, which explains why it is now the Valley Heights Locomotive Depot Heritage Museum.