This is the 583rd most frequent Lithuanian word.
šilutės
"Šilutės" refers to something related to Šilutė, a town in Lithuania (e.g., Šilutės could mean "of Šilutė" or "Šilutė's").
In this sentence, 'Šilutės' is in its genitive singular form, indicating the origin (from Šilutė).
Turiu draugą iš Šilutės, kuris mėgsta žvejoti.
I have a friend from Šilutė who likes fishing.
Here, 'Šilutėje' is in its locative singular form, specifying the location where the festival takes place.
Šilutėje vyksta tradicinis pavasario festivalis.
A traditional spring festival takes place in Šilutė.
Here, 'Šilutę' is in its accusative singular form as it is the direct object of the action 'važiuosime' (we will go).