The festival had its inaugural outing in 2013, popping up in Kiama as a sister event to the sprawling Illawarra Folk Festival at Bulli.

After attracting 37 acts and more than 1000 folk fans across five venues last year, Folk By The Sea will return to Kiama Showground on the weekend of September 26-28.

"Last year met our best expectations and went very well, so we were very happy," said festival organiser Rod Cork.

"There were no teething problems, and the immense support from Kiama council meant things ran smoothly," he said.

The 2013 event was a return for the Folk Club to its spiritual home in the southern suburbs, after hosting the Folk Festival at Jamberoo for years before moving to the larger Bulli Showground site.

Mr Cork said it was important to the club to have a presence in the area, and that this year's event would be even bigger than 2013.

"We had abandoned Kiama to a degree, so we're happy to be back doing something in the area, and everyone is happy to have us back," he said.

Folk By The Sea will again take over Kiama Showground, but organisers are looking to expand the site by adding more venues and more musicians.

Mr Cork said the Illawarra Folk Festival and the Kiama event would work together, not in competition, to increase the profile of folk music in the Illawarra.

"We hope both the festivals can supplement each other.

"They are in different times and places, so our whole aim is to promote the music," he said.

Visit folkbythesea.com.au for more information.