[4] During the fascist period, with the union of municipalities of Ispani and Santa Marina, Policastro became a hamlet of Capitello.

The town is located on the southern side of Cilento, not too far from the national park, in the middle of the Gulf of Policastro on the Tyrrhenian Sea.

Policastro attracts visitors, especially in summer, due to the quality of its water, its rural surroundings and a good rail link and for camping.

The town recently inaugurated (2006) as the final track of national road SS18, which runs from Salerno - Battipaglia - Paestum - Agropoli - Vallo della Lucania - Palinuro to Sapri.

Policastro has another carriageway, a variation of SS 517 that reaches Padula and the A2 Motorway[5] exit Padula-Buonabitacolo, via Sanza.