The name Penetanguishene is believed to come from either the Wyandot[3] or Abenaki via Ojibwe,[4] meaning "land of the white rolling sands".

The young French translator, Étienne Brûlé, was the first European to set foot in the Penetanguishene area, some time between 1610 and 1614.

In 1793, John Graves Simcoe, the first Lieutenant Governor of Upper Canada, visited the area and saw the location's potential as a Royal Navy naval base.

Some other small craft were headquartered in Penetanguishene for the exploration and mapping of the Great Lakes' coastline overseen by Lieutenant Henry Wolsey Bayfield.

Many of Penetanguishene's families today are descended from the Québécois settlers who arrived in the 1800s, giving the town a marked bilingual nature.

In addition there is the Waypoint Centre for Mental Health Care which includes a high security forensic psychiatric unit for people declared to be not criminally responsible for dangerous offences but considered unsafe to be allowed in the community.

[6] Tourism occupies a considerable portion of the economy with five marinas and shops and restaurants catering to the tourist trade.

The King's Wharf Theatre located at Discovery Harbour has a programme of popular plays and musicals every summer.

The oldest is St. James on-the-Lines, a small wooden Anglican church built in 1836 to serve the military garrison and civilian population.

Originally named "Ste-Anne's Jesuit Memorial Church: Canadian National Shrine", it is sometimes referred to today as the "Cathedral of the North".