The femoral sheath is a funnel-shaped structure located in the upper thigh, specifically in the groin area. It is formed by the fascia that surrounds the femoral vessels and contains three compartments: one for the femoral artery, one for the femoral vein, and a third for lymphatic vessels. This sheath allows for the passage of these important structures from the abdomen to the leg. The femoral sheath is clinically significant because it can be a site for hernias, known as femoral hernias, which occur when tissue protrudes through the sheath. Understanding the anatomy of the femoral sheath is essential for medical professionals, especially during surgical procedures involving the femoral artery or vein.