The town is located on the Costa del Azahar, north of the Serra d'Irta along the Mediterranean coast.

Peniscola, often called the "Gibraltar of Valencia", and locally as "The City in the Sea",[3] is a fortified seaport, with a lighthouse, built on a rocky headland about 220 feet (67 m) high, and joined to the mainland by only a narrow strip of land (tombolo).

It was next captured by the Carthaginians under Hamilcar Barca; legend has it that this is the place where he made his son Hannibal swear an oath that he would never be a friend of Rome.

[11] Peniscola hosted an annual comedy film festival that draws Spanish and foreign actors and filmmakers, and features screenings in historic venues.

That the festival celebrates comedy is a natural fit; the city was the backdrop for Luis García Berlanga's comedic masterpiece Calabuch.