Located at the northern bank of the Kerian River within the Southern Seberang Perai District, it is the southernmost populated place of Penang.

[1] Founded as an agricultural village, Nibong Tebal now houses light industries as well, including one of Malaysia's largest manufacturers of paper products.

Sugar harvesting formed the mainstay of Nibong Tebal's economy during its early years; the industry was dominated by the Europeans due to their technological superiority.

[4][6] European influence in Nibong Tebal soon permeated into the area's social fabric, with the arrival of Catholic missionaries in the late 19th century.

[10][11][12] These routes are complemented by Rapid Penang's Congestion Alleviation Transport (CAT), a free-of-charge transit service within Nibong Tebal.