Known for its thermal waters, year-round agriculture, and natural beauty, Peshkopi is also developing a reputation as tourism destination for outdoor activities such as hiking, camping, mountain biking, and rock climbing.

The third tallest mountain in the Balkans, Mount Korabi, and the birthplace of Albania's national hero, Gjerg Kastrioti, are nearby heritages sites.

The region of Dibër was subsumed under the Archbishopric of Ohrid in 1019, and one year later received the status of an episcopate with its center in the Bulke ward of Peshkopi, located in what is now the neighborhood of Dobrovë.

[5] The region today known as Dibër was inhabited in pre-Christian times by the Illyrian tribe known to the Romans as Penestae, Πενέσται in Ancient Greek (Albanian: penestë).

[7] Under the rule of the Ottoman Empire, Peshkopi (then Debre-i Zir, which meant "Lower Debre" in Persian) was a small market town, overshadowed by the larger and more flamboyant Debar (Albanian: Dibra e Madhe, "Greater Dibër"), which today lies just over the Macedonian border.

[8] In the aftermath of the breakup of the Ottoman Empire, a Serbian army occupied Dibër and entered Peshkopi in early December 1912.

The Austro-Hungarian Empire, an ally of Bulgaria, brought an army to Peshkopi on April 12, 1916, and engaged in punitive house-burnings and executions throughout the region in an attempt to quell local resistance.

Fighting continued in the Dibër region until early September, leaving the Communist-dominated National Liberation Army (Albanian: Ushtria Nacionalçlirimtare) in control.

The valley is also known for its fertile soil and is an important agricultural area, producing crops such as corn, wheat, and vegetables.

Elez Isufi Boulevard is a pedestrian-only street in the middle of Peshkopi lined with linden (Albanian: bli) trees.

[13] Thermal mineral water springs and sulphur baths (Albanian: llixha) in the vicinity of Peshkopi are a draw for seasonal tourism, primarily from within Albania, but also to a lesser extent from neighboring countries.

The town is served by the Rinas Mother Teresa International Airport in the capital city of Tirana, which is located around 200 km to the west of Peshkopi.

There are also minibuses and vans (Albanian: furgona) serving a wider set of destinations, which depart when sufficiently full.