Panagudi is known for its wind farms, the Pathini energy drink (from palm trees), brick production, clay tiles, climatic conditions and scenic views Legend has it that Panagudi got its name from its abundance of palm trees, known in Tamil as panai maram.

Panagudi has the Western Ghats (Mahendragiri) running on the west side and is surrounded by a chain of mountains.

The mountains form natural waterfalls named Kuthara Paanjan and Kani Maram Thoppu, both of which receive water when the season is favourable.

A waterfall is located in the area known as Kuthira Panchan, in Mahendragiri of the Western Ghats, 9 kilometres (5.6 mi) away from the Panagudi Police Station.

[3] The other popular areas in the mountains are Kanchi Paarai, Kunni Muthu Solai, Sengamaal, and Iyar Thottam.

The Panagudi forest is a habitat of various animals such as tigers, elephants, different species of deer including sambar deer, fox, Indian wolves, red dogs, bears, rabbits, porcupines, and various species of snakes and birds.

The town was a business hub for various corporations such as KKNPP and ISRO, as well as tile factories, wind farms, and other projects.