We present an analysis of the photometry and spectroscopy of the host galaxy of Swift-detected GRB 080517. From our optical spectroscopy, we identify a redshift of z = 0.089 ± 0.003, based on strong emission lines, making this a rare example of a very local, low luminosity, long gamma ray burst. The galaxy is detected in the radio with a flux density of S 4.5 GHz =0.22±0.04 mJy -one of relatively few known GRB hosts with a securely measured radio flux. Both optical emission lines and a strong detection at 22µm suggest that the host galaxy is forming stars rapidly, with an inferred star formation rate ∼ 16 M ⊙ yr −1 and a high dust obscuration (E(B − V ) > 1, based on sight-lines to the nebular emission regions). The presence of a companion galaxy within a projected distance of 25 kpc, and almost identical in redshift, suggests that star formation may have been triggered by galaxy-galaxy interaction. However, fitting of the remarkably flat spectral energy distribution from the ultraviolet through to the infrared suggests that an older, 500 Myr post-starburst stellar population is present along with the ongoing star formation. We conclude that the host galaxy of GRB 080517 is a valuable addition to the still very small sample of well-studied local gamma-ray burst hosts.