Archaeological investigations of nearby Hoyles Mouth Cave shows evidence of Paleolithic and Iron Age use. Artifacts found there can be seen at Tenby Museum. Trefloyne is an ancient manor, the seat of the Bowen family, and marked as a separate parish on a 1578 map, but little evidence of the original manor house remains; it was still standing at the beginning of the 19th century, but in ruins by the 1880s. The Black Rock Quarry, between Penally and Tenby, provided heavy industry in the area during the nineteenth century, particularly after the Pembroke to Tenby railway arrived in 1863. Twelve large limekilns were built on a branch line 1865. They are the largest surviving limekilns in Pembrokeshire. After World War II heavy industry made way for tourism, with the Kiln Park camping and caravan resort being developed near the old quarry site.
Governance
An electoral ward with the same name exists. This ward stretches towards Saundersfoot whilst avoiding Tenby. The total population of this ward at the 2011 census was 1,710.
Amenities
The localparish church is dedicated to St Nicholas & St Teilo. It was originally called St Nicholas' but was changed at the end of the 19th century; it is suggested that Penally was the birthplace of St Teilo, a Christian leader in the 6th century. The church houses the Penally Celtic cross which was originally located in the graveyard but has since been restored and moved into the church. The village has two pubs, The Cross Inn and The Paddock, a small shop and bus service 349. Views overlook Tenby, Caldey Island, Giltar Point, and Tenby Golf Course, which runs alongside Tenby South Beach to the south of the village. Waymarked public footpaths allow people to walk through the links to the beach and to Tenby. Another golf course lies inland, to the west of the village, at Trefloyne.
Just beyond the western edge of Penally village sits the Penally training camp. This is a Defence Training Establishment used by regular, reserve and cadet forces. A small firing range owned by the Ministry of Defence is located adjacent to Giltar Point on the coast. The range, which was built in the middle of the 19th century, was used to train soldiers during World War I and World War II. When the firing range is being used, red flags are flown and there are sentries stationed at the two huts along the coastal perimeter line. If firing is taken from beyond the 100 meter firing points then an additional sentry post at Penally station level crossing is manned. Additionally a small safety boat is positioned off the coast. Part of the Pembrokeshire Coast Path is diverted along the A4139 road when the firing range is in use. The firing range has its own byelaws, which are reproduced on signs around the firing range perimeter and must be obeyed. The remains of the World War I practice trenches may be found towards the east of Giltar Point along the Pembrokeshire Coast Path.
Wildlife
In March 2014 flocks of twitchers came to see a great spotted cuckoo, a species last seen in the UK in 2009. The inexperienced migrant came to Wales instead of Spain.
