In 1923, Lucy Morgan (1889–1981), a teacher at the Appalachian School who had recently learned to weave at Berea College, created an association to teach the craft[3][4] to local women so they could earn income from their homes.

The district is characterized by one- and two-story frame farmhouses dating from the turn of the 20th century, associated agricultural outbuildings, and Rustic Revival style log buildings.

Notable buildings include the Colonial Revival style Lily Loom House and Pines; the Craft Cabin; Homer Hall; Ridgeway; and Beacon Church.

[10] As of 2005[update], Penland offered Spring, Summer, and Fall workshops in craft disciplines, including weaving and dyeing, bead work, glassblowing, pottery, paper making, metalworking, and woodworking.

[6] Penland holds an annual Community Day in early March, when the school's studios are open and visitors can work on a small project with the help of the artists.