Nestled along the junction of Highway 2A and Highway 42 in central Alberta, Penhold sits approximately 16 kilometres south of Red Deer and about 128 kilometres north of Calgary. The community is surrounded by Red Deer County and lies to the east of the Red Deer River, placing it in a well-connected corridor of central Alberta. Its origins trace back to the era of the Canadian Pacific Railway, when Penhold served as a whistle stop along the line. The name itself appears to have come from the railway siding established there, with no earlier recorded use of the name found through research. The community was formally incorporated as a village in 1904, then upgraded to town status in 1981 following substantial population growth during the late 1970s. During the Second World War, a Royal Canadian Air Force Station was established near the community, operating until its closure in 1994.
Penhold has seen consistent population growth in recent decades. The 2021 federal census recorded 3,484 residents living across 1,325 occupied private dwellings, representing a 6% increase from the 3,287 counted in 2016. A 2019 municipal census placed the population slightly higher at 3,563, reflecting 25.4% growth since 2014. The town covers a land area of 11.2 square kilometres, with a population density of roughly 311 people per square kilometre. Residents and visitors have access to a range of local amenities, including a museum featuring a caboose, mini golf, ice cream, a recreation centre with an indoor arena, a splash park, a campground, 18-hole disc golf, an outdoor ice rink, a skate park and pump track, baseball diamonds, soccer fields, and walking trails. Education in Penhold is served by three schools within the Chinook’s Edge School Division, covering pre-kindergarten through grade 12.