Petersham is located 6 kilometres south-west of the Sydney central business district, in the local government area of Inner West Council.

[5] Wardell purchased land from many grantees in the district and in 1831 his estate eventually stretched 2,000 acres (8.1 km2) from Petersham to the Cooks River.

Mosquito HR576 RAF (UK) disintegrated over the inner western Sydney suburbs of Leichhardt and Petersham on 2 May 1945 during an air test flight.

Flight Lieutenant David Rochford of Oxford, England, and Leading Aircraftman (LAC) Charles Boydell from Mosman were both killed.

Many immigrants, particularly from Southern Europe, settled in the area, drawn by its proximity to Sydney's city center and affordable housing.

A significant number of Italian, Greek and Portuguese immigrants made their homes in Petersham, creating a vibrant multicultural community that influenced the local Mediterranean culture, food and social life.

In the same period, the suburb's Anglo-Australian population began to change and Petersham became known for its strong sense of community and a mix of old and new traditions.

Older homes and terraced houses became more desirable to young professionals and artists, attracted by the proximity to the city, vibrant local culture, and relatively affordable property prices compared to other suburbs.

Petersham's proximity to Sydney's CBD made it an increasingly attractive location for higher-income residents, leading to property prices and more upscale cafés, bars and cultural venues.

[citation needed] Petersham has a number of heritage-listed sites, including: A small row of shops lines New Canterbury Road and extends down Audley Street towards the railway station.

It has been described as "the largest and grandest of the surviving 19th century railway stations in the Sydney area", and is listed on the Register of the National Estate.

Local events include the annual Audley Street festival (Bairro Português[18]), which is a celebration of the suburb's Portuguese ties.