The fictional region containing the Shire in J.R.R. Tolkien’s Middle-earth is Eriador.
Eriador is the large land-region west of the Misty Mountains and east of the Blue Mountains. The Shire lies in its northwestern part, alongside other important locations such as Bree, Rivendell, and the ruins of Arnor. Much of The Hobbit and The Lord of the Rings begins in or passes through this region.
Eriador is sometimes called a continent in casual descriptions, but Tolkien’s maps more precisely present it as a region of Middle-earth. Gondor is a separate kingdom farther south, while Rhovanion lies east of the Misty Mountains. Harad is a southern land beyond Gondor. Eriador’s history includes the rise and decline of the North-kingdom of Arnor, the journeys of the Dúnedain, and the presence of the ancient realm of Angmar. By the end of the Third Age, many parts of Eriador are sparsely populated, although the Shire and Bree remain important settlements.