Damariscotta is a town in Lincoln County, Maine, United States. The population was 2,297 at the 2020 census. Damariscotta is the oyster capital of New England. A popular tourist destination, the towns of Damariscotta and Newcastle are linked by the Main Street bridge over the Damariscotta River, forming the "Twin Villages". The name Damariscotta derives from a native place-name meaning place of abundance of small fish.