Highland Mills is a hamlet in Orange County, New York, United States. The population was 3,468 at the 2000 census. It is part of the Poughkeepsie–Newburgh–Middletown, NY Metropolitan Statistical Area as well as the larger New York–Newark–Bridgeport, NY-NJ-CT-PA Combined Statistical Area. Highland Mills is in the Town of Woodbury adjacent to the New York State Thruway.