The Blue Butterfly Inn is on (or appears to be on, more precisely) the grounds of the Yosemite View Lodge, which puts it as close to Yosemite Valley as you can get without actually being in Yosemite. The lodge's property butts up against the Yosemite border, the Arch Rock entrance gate is 2 miles (3.2 km) farther east, and the valley itself is about 10 miles (16 km) away.
Though it's tucked into the grounds of the Yosemite View, the Blue Butterfly is a separate entity. Innkeepers Liz and Ron Skelton have owned the land the inn is on for more than thirty years. When the Yosemite View Lodge's owners began buying up land in the area, they refused to sell, harboring dreams of building an inn of their own here, and the lodge was ultimately erected around the property. The Skeltons eventually built their own bed & breakfast on the lot and opened it in 2007.
The inn contains five guest rooms, four with river views. Breakfast on the deck beside the river is included in the room price. Two cats of languid and genial temperament roam the premises, so guests are entreated to leave their own pets at home. One of the owners is an astronomy buff and keeps a collection of telescopes that guests are welcome to use for stargazing (though the inn's location in the Merced River Canyon precludes an encompassing view of the night sky) and birdwatching. The Yosemite View Lodge's two restaurants are nearby - one, in fact, is next door.