Faywood is a census-designated place in Grant County, New Mexico, United States. As of the 2020 census, Faywood had a population of 33. Faywood has a post office with ZIP code 88034. It is located north of US 180 on NM 61.
The area was the site of hot springs which drew visitors from 1859, when a hotel and bath house was built by William Watts. By 1900, the Faywood settlement was created and named for the developers of the Faywood Hot Springs, J.C. Fay, William Lockwood. A third developer was T.C. McDermott. The post office was moved northeast to Dwyer, but is still named the Faywood Post Office.
Faywood has a cool semi-arid climate (Köppen BSk) with hot summers and mild winters.