Pelton Fell is situated in the north-west of County Durham, to the west of Chester-le-Street.

There is a hotel at the far west end of the village called The Moorings, opened in April 2007, which also has a restaurant and bar.

The village is split into two sides by a wooded embankment locally called "The Battery", near which the Twizell Burn flows.

On the Station Lane (northern) side is Pelton Fell Memorial Park, which includes a war memorial, tennis courts, children's play area, and a bowling green.

Pelton Fell Football Club is situated just off Station Lane, on the opposite side to the Memorial Park.