It is situated in the Penedès Depression on the left bank of the Foix River, and on the main axis of communication from Barcelona to Tarragona and Valencia, served by a Rodalies Barcelona line 4 and by the AP-7 autopista as well as by the C-243 towards Sant Sadurní d'Anoia, and C-15 (formerly called C-244) roads to Vilanova i la Geltrú and Igualada respectively.

The town was founded in the middle of the 12th century as a result of the decline of Olèrdola, which had been until then the main local centre.

King Peter III of Aragon died while staying at the royal palace in Vilafranca in 1285.

Vilafranca is a centre for the local wine industry, along with neighbouring Sant Sadurní d'Anoia.

Four outlying villages are included within the municipality of Vilafranca del Penedès (populations as of 2005): Vilafranca del Penedès is part of the long history of motor racing in Catalonia, from 1908-1920 events were staged over public roads from Sitges to Canyelles and Vilanova i la Geltrú, and from Mataró to Vilassar de Mar and Argentona.