Located in a mostly agricultural area, the town has a long history of troops (most notably Prussian) being stationed there and as an administrative center for local government.

Perleberg is located in the heart of the district of Prignitz, about halfway between the two largest German cities Berlin and Hamburg.

[4] It is surrounded by the municipalities Karstädt to the north-west, Gross Pankow (Prignitz) to the north-east, Plattenburg to the south-east; the Ämter Bad Wilsnack/Weisen in the south, Lenzen-Elbtalaue in the west; and the town of Wittenberge to the south-west.

In 1523 it was the muster point for an army assembled by Elector Joachim I in support of his brother-in-law Christian II of Denmark's attempt to recover his throne.

Later accounts of the incident exaggerated the circumstances to such an extent that the disappearance is sometimes claimed to have been caused by paranormal phenomena.